Global AI and semiconductor stocks extended their slide as concerns over higher interest rates, the cost of artificial intelligence investment and a potential challenge from Chinese memory makers converged.
CNBC reported on the 15th that the combined market value of the world's 20 largest AI and semiconductor stocks fell by $1 trillion (about 1,340 trillion won) over the four trading sessions from the 12th to the 15th.
Nvidia, the sector's bellwether, fell 5.3%, shedding about $291 billion (about 391 trillion won) in market value. SK hynix followed with a $243.8 billion decline and Samsung Electronics with $237.3 billion. Samsung Electronics, SK hynix and Micron Technology together accounted for about 40% of the total decline.
Data compiled by U.S. financial news outlet Benzinga showed a similar trend. The combined market value of six memory and storage companies — Samsung Electronics, SK hynix, Micron, Kioxia, SanDisk and Western Digital — has fallen $1.09 trillion (about 1,463 trillion won) since the 2nd.
On the New York market that day, Nvidia fell 1.8%, Intel lost 2.8% and AMD declined 1.5%, while Dell Technologies tumbled 6.8%.
Strong results from TSMC failed to lift sentiment. The chipmaker projected fourth-quarter revenue of as much as $54.3 billion (about 72.9 trillion won), above market expectations. Its shares still fell 2.0% in Taipei, and its American depositary receipts listed in New York dropped 1.8%.
Markets are being unsettled by views that the AI-driven supercycle is nearing its end. Others counter that prices are unlikely to collapse as they have in past downturns.
Behind the unease is the prospect of further rate increases by the Federal Reserve, which has raised concerns that financing costs for building AI data centers could climb. Competitive pressure has also grown after China's ChangXin Memory Technologies recently unveiled a new structural technology that raises memory density.
As that fueled arguments that memory supply could outstrip demand by 2029, Tesla Chief Executive Elon Musk responded in a post on X, formerly Twitter, saying China would produce an enormous amount of RAM in 2028.
Some analysts expect the shock from China to hit Korean companies hardest. Gil Luria, an analyst at D.A. Davidson, told CNBC that if there is an impact, it will show up at SK hynix and Samsung Electronics, not Micron. Micron swung between gains and losses during the session before closing 1.9% higher.
