Global Chip Stocks Hit by Sell-Off as Doubts Over AI Investment Returns Intensify
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Samsung and SK Hynix have lost nearly 15% over five sessions, dragging KOSPI down as much as 7%; Broadcom's CEO likened AI trading to a casino, and rising Chinese memory competition is forcing markets to re-examine whether chip profits can last.
How severe is this sell-off?
Samsung and SK Hynix fell 8.8% and 9.4% intraday on Tuesday. Together they account for roughly half of KOSPI's weighting, dragging the index down as much as 7%.
Over the past five trading days, both stocks have shed nearly 15%. TSMC dropped 1.8% on the same day; Taiwan's Taiex fell as much as 2.5%.
This means → the sell-off is not confined to one market — it is a synchronized decline across the global semiconductor chain, from Korea to Taiwan, Japan, and the U.S.
What did Broadcom's CEO say, and why did it rattle markets?
Broadcom CEO Hock Tan said Monday at a Singapore event: "A lot of investors don't even know what they're investing in," comparing current AI trading to a casino.
The remarks, reported by Bloomberg, spread fast. In plain terms = a core chip-industry executive publicly called AI trading a gamble — effectively shaking confidence from the inside.
BNP Paribas Asset Management senior strategist Ecaterina Bigos said the sell-off is driven by two forces: rising bond yields and growing doubts about AI investment returns.
What new pressure is Chinese competition adding?
China's CXMT (长鑫存储) is advancing a new memory architecture; SK Hynix and Samsung are developing similar technology.
Société Générale Asia equity strategist Frank Benzimra noted: "Competition from China is becoming an additional headwind for memory companies," compounded by expectations of slowing memory-chip price growth.
This means → Korea's two memory giants face a double squeeze: upstream AI demand is in question, while downstream a Chinese rival is closing the technology gap.
Samsung's earnings looked strong — why aren't investors buying it?
Samsung last week guided Q3 operating profit up nearly ninefold year-on-year, citing persistent supply shortages.
Yet SLC Management investment strategist Dec Mullarkey said: "Investors remain very cautious on chip stocks; this report has barely changed that view."
He added that chip investors vividly remember the industry's boom-bust cycles and remain skeptical about the sustainability of outsized profits. Put simply = earning a lot is not the same as earning for long — markets fear the cycle turning.
How is global capital repositioning?
In the U.S., Micron fell nearly 4% on Monday; the Philadelphia Semiconductor Index dropped 2.7%. SoftBank slid almost 8% in Tokyo; the Nikkei 225 fell as much as 2.7%.
Foreign investors have sold more than $150 billion of Korean equities year-to-date. KOSPI became the worst-performing major index globally in Q3 — after more than tripling from early 2025 through mid-July.
This reflects a shift in the market's core test: the question is no longer "can AI work?" but "can AI capital spending turn into profit?"
市场有风险，内容仅供研究参考，不构成投资建议。