Global semiconductor stocks tumbled on Tuesday, October 13, 2026, as investors across Asian and international markets sold shares in major chipmakers amid growing concerns over artificial intelligence valuations and intensifying competition from China.
The selloff hit South Korean technology companies particularly hard, while losses spread to Japanese chip-related stocks and weighed on US market futures as investors reassessed the sustainability of the AI investment boom.
South Korea’s Kospi index fell sharply, with major chipmakers Samsung Electronics and SK Hynix among the biggest losers.
The declines reflected growing concern that Chinese memory-chip manufacturer ChangXin Memory Technologies (CXMT) could increase competition in a market that has benefited significantly from rising demand for AI computing infrastructure.
Investors were unsettled by reports of technological progress by CXMT and plans for a new server-memory product before the end of the year.
Although the company has yet to demonstrate large-scale production capabilities for the technology, its advances have raised questions about whether established manufacturers can maintain their pricing power and profit margins.
Japan’s Nikkei also declined, with SoftBank Group among the companies affected by the technology selloff.
In Europe, Dutch semiconductor equipment manufacturer ASML came under pressure, while US chip stocks, including Micron, faced further declines amid broader concerns about the sector’s outlook.
The market reaction followed a strong rally in AI-related shares, fuelled by expectations that demand for advanced chips, data centres and computing infrastructure would continue expanding.
However, investors are increasingly scrutinising whether the substantial capital spending on AI will generate returns sufficient to justify elevated company valuations.
Comments from Broadcom Chief Executive Hock Tan comparing some AI investors to gamblers also contributed to market anxiety, although the remarks were interpreted differently by market participants.
Industry executives have continued to point to strong long-term demand for AI chips.
The selloff highlights growing uncertainty surrounding competition, profitability and the pace of AI adoption.
Investors are now watching upcoming corporate earnings and forecasts for clearer evidence of whether demand can support the sector’s high expectations.
