Asian AI Stocks Plunge Amid US Selloff and DeepSeek Update
Asian AI hardware and memory stocks fell sharply following a US semiconductor rout and concerns that a new DeepSeek model reduces chip demand.
A deepening selloff in United States technology stocks has triggered a significant downturn in Asian artificial intelligence hardware and memory shares. The volatility began with an eight-session rout in U.S. semiconductor shares—the longest since 2008—which erased 16% from the sector's benchmark. This trend was exacerbated by oil prices surging to $110 a barrel, fueling inflation concerns and fears that rising financing costs will stifle global AI infrastructure spending.
Goldman Sachs tracked an 11% weekly decline in a basket of regional AI hardware stocks. Specific suppliers were hit hard, including Samsung Electro-Mechanics, which plunged 23%, and Taiwan's Unimicron Technology and Nan Ya Plastics, which fell 14% and 12% respectively. In the U.S., AI infrastructure provider CoreWeave saw its share price drop 25% in one week, intensifying investor doubts about the sustainability of massive capital expenditures.
Market pressure intensified on Monday as South Korean stocks declined, with the Kospi dropping as much as 3.2%. This latest dip followed the release of a faster and leaner AI model by China's DeepSeek, sparking fears that future models will require less memory and reduce demand for chips. This hit major chipmakers Samsung Electronics and SK Hynix, both of which saw shares drop more than 4%. Similar declines appeared in Japan, where the Nikkei 225 slid approximately 2%. While some analysts warn that $3.5 trillion in spending could be at risk of impairment by 2030, TSMC provided an upbeat revenue outlook despite the broader market decline.
