Asian AI Hardware Stocks Plunge 11% on Rising Financing Costs
Bloomberg analysts reported that a Goldman Sachs‑constructed basket of Asian artificial‑intelligence hardware stocks fell 11% last week, marking the steepest weekly decline for the group since mid‑July. The sell‑off coincided with an eight‑session decline in U.S. semiconductor equities that erased roughly 16% from the sector’s benchmark, while the Nasdaq‑100 logged its worst week since April 2025.
Oil prices climbed to $110 a barrel, intensifying inflation concerns and prompting expectations that borrowing costs will stay elevated. Against this backdrop, Taiwan‑based Nan Ya Plastics slid 12% from its record high, Unimicron Technology dropped 14%, and South Korea’s Samsung Electro‑Mechanics plunged 23% over the week. Despite the price weakness, Taiwan Semiconductor Manufacturing Company (TSMC) maintained an upbeat revenue outlook.
Investors are questioning whether major technology firms and AI‑infrastructure operators can sustain the massive capital expenditures required for data‑centre expansion. U.S. AI‑infrastructure provider CoreWeave experienced a 25% weekly share‑price decline amid worries about its debt obligations.
Jian Shi Cortesi, portfolio manager at GAM Investment Management, warned that higher financing costs could postpone infrastructure projects, forcing a reassessment of earnings expectations and valuations for Asian suppliers. Kevin Net of Financiere de l’Echiquier added that companies farther from core semiconductor production face greater risk from project delays. Conversely, Kunjal Gala of Federated Hermes noted that robust AI demand continues to underpin the sector despite recent volatility.
The exposure of Asian AI hardware suppliers is substantial: TSMC, Samsung Electronics and SK Hynix together account for nearly one‑third of the MSCI Asia ex‑Japan Index. Nonetheless, there is little evidence in the article that financing pressures have weakened semiconductor orders.