Artificial intelligence-related stocks were trading up to 4.5% lower on October 13 as a sharp selloff in chipmakers prompted a broader rethink of the AI trade amid heightened competition.
MSCI's broadest index of Asia-Pacific shares outside Japan fell more than 2% to its lowest level since late July, led by the region's AI chipmakers. Nasdaq futures fell 0.77% while European futures were 0.2% lower.
Samsung fell 8% and SK Hynix dropped 10%. Taiwan's TSMC declined 1.8%, while Kioxia Holdings slid 14%. AI investor SoftBank was 8% lower.
The rout followed a sharp drop in shares of US chipmakers after reports of rapid tech progress by Chinese rival ChangXin Memory Technologies (CXMT) raised the prospect of Chinese firms closing the technology gap.
"The CXMT news appears to have been a clear trigger for the selloff in memory stocks, but I think the bigger story is that investors are becoming much less forgiving of the AI trade," said Charu Chanana, chief investment strategist at Saxo.