Chip Stocks Plunge Over $1 Trillion as AI Surge Slows

The market cap wipeout of $1.3 trillion across the semiconductor giants signals a sharp recalibration of AI‑driven hype.

AI Hype Meets Reality: The $1.3 Trillion Market Cap Collapse

■NVIDIA: $238 billion loss

■SK Hynix: $176 billion drop

■Samsung Electronics: $173 billion loss

■Micron: $113 billion decline

■Total: $1.3 trillion valuation erosion

Silicon Giants in the Crossfire

■AMD: $110 billion value fall

■TSMC: $119 billion decline

■Intel: 6% drop

■Seagate: 8% loss

Regional Ripple Effects

■SK Hynix: 9.61% fall, over 15% swing

■Samsung Electronics: more than 5% loss

■LG Innotek: 10.89% drop

■Kioxia: 13.85% decline

■ASML: 1.77% dip; ASM International: 3.28% decline

■ChiNext 300: 1.43% gain; Hang Seng China Semiconductor Chips Index: 2.5% drop

Sentiment vs Fundamentals: The Real Story

■Morningstar’s Michael Field: “The sell‑off is driven by sentiment, not fundamentals.”

■Forrester’s Charlie Dai: “AI infrastructure spend may be peaking faster than expected.”

■Alphabet: raised 2026 capex forecast

A Buying Opportunity in the Wake of the Sell‑off

■Aberdeen Investments: “Valuations are more attractive, creating opportunities to add high‑quality exposure.”

■Riedel Research Group: “The market remains healthy; memory chipmakers will hold up.”

Outlook: Resilience Amid Repricing

■High‑growth expectations test investor confidence

■Competition intensifies, but fundamentals remain solid

■Volatility could be a gateway to long‑term gains

The market’s recalibration of AI‑driven chip stocks underscores a persistent belief in long‑term growth, offering a window for value‑additive positions amid short‑term uncertainty.