AI-Linked Tech Stocks in Global Sell-Off as SoftBank Slides 6% on Market Rout

Global technology markets started the week under heavy pressure as a widespread tech stock sell-off accelerated, hitting AI-linked companies particularly hard. Investors pulled back sharply after a strong rally in recent months, signaling growing concerns that valuations in the sector had climbed too fast.

The downturn followed a steep decline in the U.S. Nasdaq last week, which fell more than 4.5%, wiping out investor confidence across global tech-heavy indices. According to a UOB note, the recent tech-led correction erased roughly $1.8 trillion in S&P 500 market capitalization.

In Asia, the impact was immediate and severe. South Korea’s chip giants—Samsung Electronics and SK Hynix—fell sharply, dragging the Kospi index down as much as 8%. Taiwan’s Taiwan Semiconductor Manufacturing Company (TSMC) also slipped nearly 3%, while Japan’s SoftBank Group dropped about 6%, extending losses across AI-linked investment portfolios.

European chipmakers were not spared either, with major names such as ASML, Infineon, and STMicroelectronics all trading lower. Analysts say the sell-off reflects a shift in sentiment from aggressive AI optimism to caution, especially as interest rate expectations remain higher for longer in the U.S. economy.

Market pressure intensified after weak signals from the semiconductor sector, including disappointing earnings from Broadcom, triggered a ripple effect across AI-related stocks. Despite the current downturn, some analysts still expect strong activity in tech markets, pointing to upcoming high-profile IPOs and continued long-term demand for AI infrastructure.

source: cnbc