Chip stocks on international stock exchanges in free fall

A dramatic collapse in chip and technology stocks has triggered a wave of selling in the USA, which has now also affected the leading Asian stock exchanges.

The trigger was a massive price slide on Wall Street, where large tech and chip companies lost billions in market value within hours. The background is growing doubts among investors as to whether the billion-dollar investments in artificial intelligence (AI) and the construction of data centers will pay off.

Concern about regulation after US midterms

The uncertainty is further increased by the latest political developments in the USA. After the Democrats' victory in the midterm elections, the debate about regulation and location issues for new data centers is intensifying. Concerns are growing on the markets that political resistance could slow down the expansion of AI.

Investors' fear follows a simple chain, explains Stephan Kemper, chief investment strategist at BNP Paribas: "If approvals for electricity and buildings stall, the finished data center shells will be missing from 2028, and the high-performance chips bought on credit today will then be unable to generate any income." Stocks from manufacturers of memory and high-performance chips are therefore particularly under pressure.

“Black Swan” moment

On Wall Street, the important technology index Nasdaq 100 fell 6.4 percent. This is the strongest daily loss since the Corona crash in March 2020. But the much-watched S&P 500 also had its blackest day since April 2025.

Financial professionals like Stephan Kemper therefore speak of a so-called black swan: "A market collapse of over four percent resulting from a phase of complete carelessness, accompanied by an extreme explosion of volatility." Now it is important not to panic. “Such painful adjustments are part of the stock market,” said Kemper.

Seoul Stock Exchange has to suspend trading

As a result of the global sell-off in tech stocks, the South Korean stock market also came under significant pressure this morning. The leading Kospi index fell by up to almost nine percent in early trading and ended trading still a good six percent in the red. The Japanese leading index Nikkei 225 also fell six percent.

Due to the sharp price losses in the morning, the Seoul stock exchange suspended trading for 20 minutes. A so-called circuit breaker is intended to prevent panic selling from further destabilizing the market. The government called an emergency meeting with representatives of financial regulators and the central bank.

Anthropic IPO in danger?

The AI ​​company Anthropic actually wanted to go public in the next few weeks - the IPO is already eagerly awaited. But financial professionals believe the plans are in danger given the current market situation. The advertising tour planned for next week among lenders for an initial listing in November is on the brink, reports the Reuters news agency, citing insiders.