GoKawiilTech stocks in Asia extended their sell-off Monday, as investors soured on global AI-linked plays after the U.S. tech-heavy Nasdaq declined more than 4.5% last week.
Memory chip behemoths and heavyweights on South Korea's Kospi Index, Samsung Electronics and SK Hynix, ended Monday's trading session down 10.18% and 7.68%, respectively. The Kospi plunged as much as 8%, as the two companies make up over 40% of the index.
Taiwan Semiconductor Manufacturing Co , or TSMC, was down 2.96%, while Hon Hai Precision, also known as Foxconn, fell 5.27%.
Japanese tech investor Softbank Group plunged 6.1%, while Tokyo Electron and Advantest were down 7.45% and 5.72%, respectively.
European chip stocks followed Asian peers lower in early dealmaking, before rebounding into positive territory during midday trade as U.S. peers also traded higher.
BE Semiconductor 's shares gained 1.9%, while ASML was last seen 1.1% higher at 9 a.m. ET. Infineon was up 1.6%, while STMicroelectronics advanced 1.7%. ASM International traded roughly 0.1% lower.
The moves follow a risk-off sentiment amid expectations that interest rates in the U.S. could stay higher for longer, following last week's U.S. labor data that sharply beat estimates.
"We are pushing the final two rate cuts in our Fed forecast back to June and December of 2027. The labor market has been stronger than we anticipated," Goldman Sachs said in a note on Friday.
The share price declines in Asian tech stocks follow a recent rally that was supported by investor optimism on AI demand. Last month, Samsung Electronics and SK Hynix each crossed $1 trillion market valuation, while SoftBank recently became the most valuable company in Japan.
The sell-off in tech names was triggered after Broadcom's revenue for fiscal second quarter missed market estimates last week, plunging its shares and causing a cascading impact on the tech sector.
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