AI chip spending worries trigger global tech stock selloff

Investors grew uneasy about the cost of building artificial‑intelligence systems and rising competition from China in memory chips, prompting sharp declines across technology equities. Nasdaq futures slipped about 1% and the sector index in the United States dropped, while Asian markets saw even steeper falls – South Korea’s KOSPI fell more than 10% and briefly halted trading, Japan’s Nikkei slipped roughly 4%, and Taiwan’s index declined around 4%. Shares of major chip makers such as Nvidia, Samsung Electronics, SK Hynix and ASML lost double‑digit percentages. The market turmoil was amplified by the blockbuster IPO of Chinese memory‑chip start‑up ChangXin Memory Technologies, whose stock jumped nearly 500% on debut before retreating, and by reports that China has begun producing deep‑ultraviolet lithography machines, a sector previously dominated by Dutch firm ASML.

Economist Peter Schiff linked the AI‑related sell‑off to broader financial strains, noting that Alphabet fell 10% after announcing higher AI capex, while Japan’s 30‑year government‑bond yield reached a record near 4% and the yen sank to a 40‑year low. He warned that Japan’s large Treasury holdings could face selling pressure, adding to the market’s unease.