SK Hynix Plunges Over 10% as Fed Hike, AI Funding Fears Hit Asian Tech
Updated
Updated · CNBC · Oct 15
SK Hynix Plunges Over 10% as Fed Hike, AI Funding Fears Hit Asian Tech
3 articles · Updated · CNBC · Oct 15
Summary
SK Hynix fell more than 10% on Thursday, leading a sharp Asian tech sell-off as investors dumped chip and hardware names tied to the AI buildout.
U.S. Treasury yields above 5% and hotter-than-expected inflation data stoked fears the Federal Reserve may raise rates further, increasing the cost of financing massive AI infrastructure spending.
Samsung Electronics dropped 7.1%, SoftBank lost 7.9%, and Japanese chip equipment makers also slid, extending Wednesday's Wall Street retreat led by technology stocks.
The Nasdaq closed down 1.88% after Broadcom and Intel executives warned this week that funding costs could become a bigger constraint on AI expansion than chip or power shortages.
Analyst Dan Ives said the pullback reflects financing risk rather than weakening AI demand, arguing the key threat would be cuts in hyperscaler capex, canceled contracts or falling GPU rental prices.