Asian technology stocks fell Thursday as investors took profits in major AI-related names after a pullback in U.S. tech shares overnight. The sell-off highlights growing volatility across the global technology sector as markets reassess valuations and the pace of AI spending.
South Korea led losses, with chipmaker SK Hynix dropping nearly 10% and Samsung Electronics falling more than 6%. In Japan, SoftBank Group declined over 4%, while Tokyo Electron and memory chipmaker Kioxia also moved lower. Taiwan Semiconductor Manufacturing Co. slipped as broader semiconductor weakness spread across the region.
Despite the sharp moves, analysts remain positive on the long-term AI investment cycle. JPMorgan said the recent decline in Asian technology shares does not signal a fundamental shift, noting that major cloud companies are unlikely to reduce spending on artificial intelligence infrastructure. The bank said it sees no major indicators pointing to a significant slowdown over the next 6-12 months.
The broader growth outlook continues to be supported by technology and defense spending, according to S&P Global. Data showed global technology equipment activity expanded in July at the fastest pace since May 2021, while demand for software and IT services remained strong. Investors are now watching whether the recent sell-off is a temporary correction or the start of a deeper rotation away from AI-related stocks.
