Asian tech stocks tumble on AI valuation and big IPOs

Asian technology and semiconductor stocks fell Wednesday, led by heavy losses in Japan and South Korea, after a weaker U.S. session and renewed concerns about artificial intelligence valuations and several large upcoming initial public offerings.

SoftBank declined about 10%. South Korean chipmakers also dropped sharply: SK Hynix fell more than 8% and Samsung Electronics slid 7.45%. Battery maker Samsung SDI declined over 5% and display panel producer LG Display fell nearly 8%.

In Japan, semiconductor equipment maker Advantest lost 3.8% and Renesas Electronics fell 3.4%. Taiwan’s semiconductor sector eased as well, with Taiwan Semiconductor Manufacturing Co. down about 2% and Hon Hai Precision Industry, a major Apple supplier, off more than 4%.

The moves followed a softer session in the United States, where the Nasdaq Composite fell 0.97% and the S&P 500 slipped 0.26%. A semiconductor rally that had supported markets earlier cooled, and a major semiconductor exchange-traded fund ended the U.S. session down roughly 1%.

SoftBank encountered difficulty securing at least $6 billion in a margin loan backed by its stake in OpenAI and is exploring alternative financing, with the option to revisit the loan later. OpenAI confidentially filed for an initial public offering and SpaceX is expected to begin trading on Friday; investors are weighing how those transactions may affect capital flows into public technology stocks.

Brent crude traded near $92 a barrel and Treasury yields edged higher after a bond-market rally the previous day. Markets are watching the U.S. inflation report due Wednesday for further guidance on interest-rate expectations.

Investors pointed to stretched valuations in AI-linked names and the timing of large fundraising events as factors behind the regional volatility.