Investors doubt AI spending as global chip stocks tumble
Semiconductor stocks around the world took a big dip this week, with South Korea's Kospi index falling 8.1%, its lowest since April 20.
Major players like Samsung and SK Hynix both dropped at least 9%, as investors started worrying about whether all the AI spending is really sustainable, especially with China stepping up its game.
China's CXMT IPO amplifies market nervousness
China's chipmaker CXMT just launched a major IPO to boost production, which made global markets even more nervous.
Plus, news that a Chinese state-backed company is mass-producing advanced chip-making machines hit Japanese tech giants like Nikon and Tokyo Electron hard: they both fell more than 8%.
Add in concerns about NVIDIA's massive more than $750 billion in AI deals possibly inflating demand, and you've got a semiconductor industry facing some real uncertainty right now.