Asian chip and AI-related stocks fell notably as losses in US semiconductor shares spread across global markets. Despite TSMC's profit beat and raised capital expenditure forecast, concerns over industry spending intensity triggered a broad sell-off led by SoftBank and Japanese chip makers.
- SoftBank shares down 8.8% following US semiconductor rout
- TSMC raises 2026 CAPEX forecast to $60–64 billion but market remains cautious
- Japanese and Chinese tech stocks also decline amid AI spending concerns
Market signal
Asian semiconductor and AI-linked stocks broadly declined following steep losses in U.S. chip shares. SoftBank fell nearly 9%, with Japanese chip equipment companies Tokyo Electron and Advantest losing around 9-10%. The sell-off also affected Chinese tech giants including Tencent, Alibaba, and Baidu, which saw moderate share price decreases.
TSMC posted a strong profit and raised its full-year capital expenditure forecast from $52–56 billion to $60–64 billion, signaling increased investment in AI and semiconductor infrastructure. However, investors remained apprehensive about the sustainability of this heavy spending amid uncertain near-term demand dynamics across the semiconductor sector.
Operator impact
The sharp declines in major Asian tech companies highlight amplified market sensitivity to semiconductor capital expenditure cycles and AI sector momentum shifts. Operators heavily tied to AI chip manufacturing and equipment, such as TSMC and Tokyo Electron, face increased scrutiny on how effectively their investments will translate into growth amid current market corrections.
SoftBank's significant stock drop underscores vulnerability in investment portfolios exposed to AI and chip sectors, emphasizing the need for operators and buyers to evaluate risk exposure amid fluctuating tech market sentiment. The patent infringement ruling against Kioxia adding legal headwinds further complicates operational outlooks for semiconductor manufacturers in Japan.
What to watch next
Market participants should monitor upcoming quarterly earnings and guidance updates from leading semiconductor manufacturers and AI technology companies. TSMC’s elevated capital expenditure forecast will be a key metric indicating industry confidence in ongoing AI infrastructure build-out, though investor appetite may remain volatile depending on global economic conditions and chip demand.
Additionally, legal developments, such as patent disputes involving companies like Kioxia, may influence sector risk assessments. Broader tech stock momentum in China and Hong Kong will also provide insight into regional sentiment around AI and chip investments amid global market uncertainties.