Huo Xing Finance reports that on October 19, according to Bloomberg, Asian semiconductor stocks continued to weaken on Monday, with the Bloomberg Asia Semiconductor Index falling more than 2% to its lowest level since July, dragged down primarily by TSMC, SK Hynix, and Japan’s Advantest. Market concerns stem from two main sources: first, ongoing pressure on U.S. AI infrastructure financing, with CoreWeave’s fundraising ability being questioned and expectations for Anthropic and Nscale’s IPOs cooling; second, China’s DeepSeek released a new model update over the weekend, claiming faster performance and lower resource consumption, sparking concerns that reduced storage requirements for AI models could dampen chip demand. The Korean Composite Stock Price Index (Kospi) posted its largest weekly decline since October 2008 last week. On Monday, the index fell more than 3% before recovering some losses; Japan’s Nikkei 225 dropped as much as 2.3%, and Taiwan’s Weighted Index fell 2%. Kang DaeKwun, CEO of Life Asset Management, said current market uncertainty is too high to determine when the Korean stock market will hit bottom, with U.S. corporate AI project financing being a key risk. He noted that Korean chipmakers’ profitability remains heavily dependent on continued U.S. investment in AI infrastructure. This week’s earnings reports from tech giants such as Meta and Tesla will serve as a crucial window into the momentum of AI capital expenditure growth.
Asian chip stocks fall amid concerns over AI funding and DeepSeek model update
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Summary
Asian chip stocks plunged sharply on October 19, with the Bloomberg Asia Chip Index falling more than 2% to a seven-month low. The Fear & Greed Index reflects rising anxiety as U.S. AI funding slows and DeepSeek launches a new model requiring fewer resources. TSMC, SK Hynix, and Advantest led the decline, while South Korea’s Kospi and Japan’s Nikkei 225 also dropped significantly.
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