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AI stock swings as China debuts CXMT and advances deep-UV tools
CXMT’s Shanghai debut surged 466% to 3.3tn yuan, while global AI-linked shares slid sharply and the Nasdaq briefly entered correction after a reported deep-ultraviolet lithography breakthrough.
Global investors scrambled to parse a fast-moving challenge to western chip dominance, driving sharp swings in AI-linked stocks even as major US and Asian indices whipsawed, according to analysis published by the Guardian Business.
The turmoil began with a “double whammy,” after Chinese memory chipmaker CXMT floated in Shanghai and surged 466% in value to 3.3tn yuan on Monday. That same day, it was reported that China had developed its own tools for deep-ultraviolet lithography, a technique essential to the computer chip supply chain and long associated with ASML’s monopoly.
AI-linked shares, especially semiconductor stocks, fell across markets. South Korea’s Kospi dropped 11.5% on Tuesday and a further 6% on Wednesday, led by SK Hynix and Samsung Electronics, while the main US tech index, the Nasdaq, slid more than 10% from a recent high and briefly moved into correction territory before later easing.
The selloff was followed by a rebound after strong financial results from Amazon and Microsoft helped calm traders. The Kospi jumped nearly 20%, though it still logged its worst month since October 2008, and Nvidia was said to have fallen more than 5% by Thursday evening, before being overtaken by Apple as the world’s largest listed company.
Latest closeNasdaq Comp. 26,749.30 ▼0.7%|Kospi 7,080.92 ▲1.0%