Asia tech stocks fall as AI infrastructure costs weigh on sentiment
Asian tech stocks slide as AI costs squeeze margins and weigh on chipmakers See which major chipmakers fell and what it signals for tech profits
Asian technology shares fell sharply after declines on Wall Street, with investors reassessing the cost of artificial intelligence infrastructure and its impact on company margins.
SoftBank Group dropped more than 13% in Tokyo, while SK Hynix fell over 10% in South Korea and Samsung Electronics also declined. The selloff spread across major chipmakers and internet companies in Japan, Taiwan, Hong Kong, and mainland China.
The weaker tone in Asia followed a fourth straight decline for the Nasdaq Composite. In the U.S., Apple fell after raising prices on some products, and Microsoft also declined after increasing Xbox prices. Analysts said the moves added to concerns that higher component and chip costs could pressure profits across the technology sector.