Asian Chip Stocks Plunge as AI Spending Doubts Spark 7% SOX Selloff
SOX has more than doubled off its 52-week low of $5,418.316.
Summary
The PHLX Semiconductor Index fell 2.2% Monday, capping a three-day, 7%+ slide as doubts over AI spending returns intensify. Asian markets followed sharply lower: Korea's Kospi dropped 7.7% with SK Hynix down 11% and Samsung off 8.7%, triggering trading halts. A new threat emerged from China, where a state-backed firm reportedly began mass-producing deep ultraviolet lithography equipment, potentially eroding the competitive moat of Western suppliers. The selloff is broad, hitting Japanese names Kioxia (-15%) and Kokusai Electric (-12%). This follows the June 23 SOX plunge of ~8% and the July 6 AI expenditure index decline, reinforcing a pattern of AI capex skepticism. The combination of demand fears and new supply-side competition makes this a material negative for the sector.
At the time of this announcement, SOX was trading at $11,554.88 on NASDAQ in the Technology sector. The 52-week trading range was $5,418.32 to $14,655.29. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.