Memory Chip Sell-Off Triggers Global Market Volatility

Global stock markets experienced significant volatility on October 13, 2026, triggered by a sharp sell-off in memory chipmakers. The decline followed reports that Chinese rival ChangXin Memory Technologies (CXMT) has made technological advances in server memory. CXMT President Cao Kanyu announced plans to introduce a new server memory product by the end of 2026, challenging the dominance of established players.

South Korea's Kospi index suffered the steepest losses, plunging more than 7% intraday to end the day down 5.5%. Japan's Nikkei 225 dropped 1.8%, with the sell-off led by Samsung Electronics, SK Hynix, and Micron Technology. On Wall Street, the Nasdaq composite fell 0.3% and the S&P 500 slipped 0.1%, although the Dow Jones Industrial Average rose 383 points.

Broader market anxiety persists regarding the sustainability of artificial intelligence investments. Broadcom CEO Hock Tan questioned investor understanding of AI bets, while billionaire Ray Dalio characterized the AI trade as a "classic bubble." Additionally, the International Monetary Fund warned that AI-linked valuations and debt pose risks to global financial stability.