Asian AI stocks fall as rising financing costs threaten spending boom

Investing.com — Asian artificial intelligence hardware stocks face mounting pressure as a selloff in U.S. technology shares raises concerns that higher borrowing costs could undermine global AI infrastructure spending, Bloomberg analysts reported.

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A Goldman Sachs basket of Asian AI hardware stocks plunged 11% last week, its steepest weekly decline since mid-July, as investors reassessed valuations across the semiconductor supply chain.

The decline followed an eight-session selloff in U.S. semiconductor stocks that erased approximately 16% from the sector’s benchmark, while the Nasdaq 100 recorded its worst week since April 2025.

Rising oil prices, which reached $110 a barrel, added to inflation concerns and fears that borrowing costs could remain elevated.

Among Asian suppliers, Taiwan’s Nan Ya Plastics fell 12% from its record high, while Unimicron Technology declined 14% over the week. South Korea’s Samsung Electro-Mechanics plunged 23%.

The losses persisted despite an upbeat revenue outlook from Taiwan Semiconductor Manufacturing Company (NYSE).

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Investors are increasingly questioning whether major technology companies and AI infrastructure operators can sustain the enormous capital expenditure required to expand data centres.

Financing concerns intensified after U.S. AI infrastructure provider CoreWeave (NASDAQ) suffered a 25% weekly share-price decline amid worries about its debt obligations.

Jian Shi Cortesi, a portfolio manager at GAM Investment Management, warned that higher financing costs could delay infrastructure projects, forcing investors to reassess Asian suppliers’ earnings expectations and valuations.

Kevin Net of Financiere de l’Echiquier said companies further removed from core semiconductor production could face greater risks from project delays.

The exposure is substantial, with TSMC, Samsung Electronics and SK Hynix collectively representing nearly one-third of the MSCI Asia ex-Japan Index.

However, there is little evidence that financing pressures have weakened semiconductor orders.

Kunjal Gala of Federated Hermes said robust AI demand continues to support the sector despite recent market volatility.

Original Article

Asian AI stocks fall as rising financing costs threaten spending boom – Bloomberg

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