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Chip stocks slide as investors question AI demand sustainability
Shares in SK Hynix and Samsung have fallen sharply over the past month, even as both remain up multiples over the last year.
BBC Business reports that sharp declines in chip makers have reignited concerns that the AI market’s recent run may be losing momentum. The outlet links the pullback to worries that demand for the chips that power AI may be less durable than investors previously assumed.
In Asia, Korean chip stocks have been hit the hardest, with SK Hynix down 46% and Samsung down 35% over the last month. BBC Business notes that despite the steep monthly drops, both companies’ shares are still up threefold or fivefold, respectively, over the past year, which has led some investors to view the selloff as profit taking after large gains.
The selloff in chips has also spilled into major US technology names. BBC Business says shares in Google and Tesla fell briefly before recovering after each pledged to spend billions more on AI in the months and years ahead.
Looking ahead, BBC Business points to the timing of upcoming and recent results from large AI-linked companies such as Meta, Microsoft, and Amazon, saying investors will be able to scrutinize how much they are betting on AI. The article frames the broader debate as whether the current valuation enthusiasm reflects a sustainable shift or an “AI bubble.”