Asia Tech Stocks Slide as AI Optimism Fades

CNBC reported Monday that Asia tech stocks extended a sharp regional sell-off, with major AI-linked names shedding billions in market value after a rough prior week on Wall Street.

SoftBank and South Korean Chipmakers Take the Biggest Hits

SoftBank Group fell more than 7.5% in Tokyo trading, erasing a portion of gains built up during a prolonged AI-driven rally. Japanese chip-equipment makers Tokyo Electron and Advantest dropped 6.7% and 5% respectively.

South Korea’s Kospi index plunged as much as 8% intraday. Samsung Electronics and SK Hynix fell approximately 5% and 2% each. Together the two chipmakers account for more than 40% of the Kospi’s total weighting, amplifying the index-level damage.

Elsewhere, Taiwan’s TSMC declined around 2%, while Hon Hai Precision — better known as Foxconn — fell more than 5%.

What Triggered the Sell-Off

The immediate catalyst was a disappointing revenue report from Broadcom, whose fiscal second-quarter figures fell short of Wall Street estimates. The shortfall sent shockwaves across semiconductor and AI-adjacent equities globally.

The VanEck Semiconductor ETF lost over 9% in a single session Friday. Arm Holdings, the British chip designer majority-owned by SoftBank, tumbled nearly 13% on the week. Micron Technology also shed more than 13%.

The Nasdaq composite fell over 4.5% across the prior week. Analysts at UOB estimated the broader tech rout wiped roughly $1.8 trillion from S&P 500 market capitalisation in that period.

The Rally That Came Before

The damage looks starker against the backdrop of recent highs. Just weeks ago, investor enthusiasm around AI infrastructure spending had pushed both Samsung and SK Hynix above a $1 trillion market capitalisation milestone. SoftBank had climbed to become Japan’s most valuable listed company.

That optimism was fuelled by sustained expectations that hyperscaler capital expenditure on AI would keep demand for memory chips and advanced semiconductors elevated. Broadcom’s miss punctured that narrative — at least for now.

Also Read: Broadcom Earnings Miss Triggers Tech Sector Slide

Broader Markets Also Under Pressure

Asian equities outside the tech sector also retreated Monday. Fresh geopolitical signals around the Iran conflict added another layer of uncertainty for regional investors already navigating elevated volatility.

UOB analysts noted that attention will soon shift to a high-profile Nasdaq debut expected on June 12, described as potentially the largest IPO on record, involving a space exploration and AI-linked company.

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