Chip stocks extended losses in on Thursday as a global semiconductor sell-off deepened overnight, with South Korea’s benchmark KOSPI (^KS11) tanking 7%.
In the US, Chip giants Nvidia (NVDA) and AMD (AMD) were down more than 2% and 3%, respectively. Broadcom (AVGO) and Intel (INTC) also declined.
Memory makers Micron (MU) and SK Hynix (SKHY) also opened lower, deepening the prior session’s chip sector decline on Wall Street as worries about further Fed rate hikes sparked by a hot inflation read collided with fears of AI-driven debt financing.
Meanwhile, SK Hynix (000660.KS) and Samsung Electronics (005930.KS) fell 11% and 9%, respectively, after tanking earlier this week over concerns about intensifying competition from China. The two memory giants account for more than half of the South Korean stock market’s total capitalization.
216.89 -4.41 (-1.99%)
As of 11:14:28 AM EDT. Market Open.
NVDA AMD MU
Concerns over borrowing costs also weighed on the AI trade on Wednesday, hitting Nvidia (NVDA)-backed neocloud provider CoreWeave (CRWV).
The stock fell more than 15% after a chart showing CoreWeave’s bond yields circulated on social media. The sell-off underscored concerns about the company’s debt-heavy balance sheet and whether it can scale its business quickly enough to cover rising interest expenses.
Any slowdown in AI financing could also spell trouble for chipmakers, which have been among the biggest beneficiaries of the infrastructure investment boom as hyperscalers race to build out data centers.
On Thursday, TSMC (TSM) reported accelerating profit and revenue growth. The world’s largest contract chipmaker forecast fourth-quarter revenue of as much as $54.3 billion, well above analysts’ expectations.
TSMC’s third-quarter profit rose 69% year over year, offering a counterpoint to the growing concerns surrounding the AI trade in recent sessions.
Still, the stock was poised to open lower on Thursday amid a broader sell-off in chip stocks.
Ines Ferre is a senior business reporter for Yahoo Finance.
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Source: finance.yahoo.com
