Asian AI Stocks Fall as Rising Financing Costs Threaten Spending Boom, Bloomberg Reports

3-line summary

• Goldman Sachs' Asia AI hardware basket fell 11% last week, its steepest weekly decline since mid-July, Bloomberg reported; Taiwan's Nan Ya Plastics fell 12% from a record high, Unimicron Technology dropped 14% on the week, and South Korea's Samsung Electro-Mechanics plunged 23%.
• The moves track a broader selloff: US chip stocks fell for an eighth straight session, erasing about 16% from the sector benchmark, the Nasdaq 100 posted its worst week since April 2025, and US AI-infrastructure firm CoreWeave fell 25% on the week amid debt concerns; TSMC, Samsung Electronics, and SK Hynix together make up about a third of the MSCI Asia ex-Japan index.
• Investors are questioning whether big tech and AI-infrastructure operators can sustain capital spending on data-center buildouts amid higher borrowing costs; GAM's Jian Shi Cortesi said rising financing costs could delay infrastructure projects and prompt reassessment of Asian suppliers' valuations, while Federated Hermes' Kunjal Gala said strong AI demand still supports the sector and the report found little evidence that financial pressure has weakened chip orders.

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