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Semiconductor selloff spreads across global markets as AI valuation worries return
The VanEck Semiconductor ETF fell more than 2%, while ASML dropped as much as 8.4% and SK Hynix fell over 7% amid renewed concerns about AI-linked valuations.
Global markets turned lower as investors returned to concerns about AI-related valuations and profitability in semiconductors, with chip stocks across multiple bourses under renewed selling pressure, LiveMint Markets reported. The VanEck Semiconductor ETF fell more than 2%, extending losses from Friday.
In the US, ASML shares tumbled by as much as 8.4% during Monday trading, while ASM International and BE Semiconductor also logged sizable declines. SK Hynix fell more than 7%, and Nvidia led the selloff among chipmakers, down about 5%.
The weakness followed a brief rally earlier in the session tied to Chinese memory-chip maker CXMT's blockbuster Shanghai IPO, but profit-taking quickly erased those gains, the outlet said. In Asia, South Korea's KOSPI and Japan's Nikkei 225 faced additional pressure, with Samsung Electronics finishing up more than 13% and Hanmi Semiconductor down more than 12% in South Korea, while Japan saw losses including Kioxia down over 18% and Advantest and Renesas each down more than 10%.
The news also pointed to a softer crude backdrop after Washington and Tehran maintained their pause in hostilities and resumed diplomatic efforts, with WTI extending its decline. Enrich Money CEO Ponmudi R said the ongoing semiconductor selling is weighing on investor sentiment despite the easing geopolitical backdrop, while Schroders' Dorian Carrell highlighted questions about semiconductor profitability, especially in Asia, as companies fund AI spending without clear participation from the broader chip supply chain.
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