Stories
AI and Energy Stocks Plunge Up to 5% Amid Global Selloff and Rising Tech Fears
- •Artificial intelligence-related stocks dropped up to 4.5 percent on October 13 following a sharp global selloff among chipmakers.
- •Major Asian chipmakers saw steep declines, with Samsung falling 8 percent and SK Hynix dropping 10 percent.
- •The market rout was triggered by reports of rapid technological progress from Chinese rival ChangXin Memory Technologies.
- •Indian AI-related counters including E2E Networks, Black Box, and Orient Technologies traded lower by up to 3.5 percent.
- •Energy stocks like Hitachi Energy India and GE Vernova T&D India fell 3 to 5 percent amid fluctuating crude oil prices.
Key Questions Answered
The sharp selloff was triggered by reports of rapid tech progress by Chinese rival ChangXin Memory Technologies (CXMT), which raised prospects of Chinese firms closing the technology gap. This development prompted a broader rethink of the AI trade amid heightened competition and growing investor skepticism regarding exceptional profits and margins.
Markets experienced significant declines, with South Korea's KOSPI sinking more than 6% in its sharpest one-day drop since July. Japan's Nikkei slid 2.6%, Taiwan stocks fell 2%, and MSCI's broad index of Asia-Pacific shares outside Japan dropped over 2% to its lowest level since late July. Additionally, Samsung fell 8%, SK Hynix dropped 10%, and SoftBank declined 8%.
Indian AI-related stocks like E2E Networks fell 3.5%, while Black Box and Orient Technologies dropped 1.5% and 1.2%, respectively. Energy and industrial infrastructure companies such as Hitachi Energy India, GE Vernova T&D India, and CG Power fell 3–5% amidst whipsawing crude oil prices and Middle East geopolitical tensions.
