Shares in semiconductor companies dropped significantly on Tuesday, following comments from Broadcom's CEO likening AI investors to casino gamblers. The South Korean Kospi index fell 6.25%, with major players like Samsung and SK Hynix experiencing substantial losses. Other Asian markets, including Japan and Taiwan, also reported declines in their respective indices.
The sell-off was exacerbated by news from Chinese chip maker CXMT, which announced progress on new DRAM architecture, raising concerns about competition for established firms like Samsung and Micron. US stock futures indicate a mixed opening as investors remain cautious about the AI sector's profitability amidst high spending on infrastructure.