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Updated · Nikkei Asia · Jul 17Kioxia Plunges 16% to Daily Limit as AI Rally Doubts Hit Chip Stocks
3 articles · Updated · Nikkei Asia · Jul 17Summary
- Kioxia Holdings fell 16% on Friday, hitting its daily limit as a selloff in semiconductor shares spread across Asian and U.S. markets.
- Investor concern over how long the AI-led rally can last triggered unwinding of leveraged tech positions, accelerating the drop in AI proxy stocks.
- Asian equity benchmarks broadly declined, with chip names leading losses as the retreat in tech sentiment widened beyond Kioxia.
- The latest slide deepens a sharp reversal for Kioxia, which had already lost about $181 billion in market value over the past month.
Insights
Did market fear sink the AI chip rally, or is new tech making memory obsolete? Is Kioxia’s collapse a sign that the AI gold rush is the new dot-com bubble?