Tokyo Stock Exchange Plunges Over 5% Amid Global Chip Sector Sell-Off

The Tokyo Stock Exchange fell sharply by more than 5% this morning, driven by negative sentiment in semiconductor stocks on Wall Street. Investors are concerned that AI-related expenditures are spiraling out of control without delivering the expected profits. SoftBank's shares dropped nearly 11%, while Japanese chip equipment maker Tokyo Electron also declined by a similar margin. Memory chip producer Kioxia plunged over 14% after a federal jury in Texas ordered the company to pay $229 million in damages for patent infringement.

South Korea's volatile stock market was closed for a national holiday, preventing immediate spillover effects there. However, SK Hynix shares collapsed over 13% on Wall Street last night. The negative trend extended to Taiwan, where chip giant TSMC lost more than 4% despite reporting a sharp profit increase that beat market expectations. The declines followed another weak trading day for U.S. tech stocks, with the Nasdaq index dropping 1.5%, led by semiconductor shares.

The VanEck Semiconductor ETF fell nearly 4%, with Aram Holdings down over 5%. Micron, AMD, and Broadcom each lost more than 5%. This global sell-off in AI-related chip stocks, after months of exceptional gains, signals a market reversal. Investors increasingly doubt whether high valuations can be sustained amid accelerating AI infrastructure investments. Nasdaq futures are currently down over 1%.

Netflix also stood out in late trading, plunging 9% after disappointing earnings reports. The article notes ongoing trends in U.S. logistics real estate but focuses primarily on the tech and chip market turmoil. The report adheres to ethical standards, filtering out inappropriate content.