New Delhi, July 30 -- Globally fancied stocks of some chipmakers have been battered lately. On Wednesday, Asian markets fell, with South Korea leading the losses. Its Kospi index dropped by over 11% and has now lost more than two-fifths of its value since its peak in June. Taiwan's market index slid 5% and Japan's Nikkei 2.6%.
Shares of South Korean chipmaker SK Hynix fell 9% after its sixfold jump in earnings failed to impress investors. While demand for its memory chips that run alongside AI processors evidently remains strong, the stock market debut this week of Chinese rival ChangXin might have drawn some chip investors away.
In America, the world's top AI chip company Nvidia has seen its share price descend from its peak earlier this year. Other share movements also suggest that excitement around an AI build-up has begun to cool off.
If AI plays were in overbought territory, Indian tech service firms may have been in an oversold zone. Perhaps a rebalance was in order. Shares of Infosys and Tata Consultancy Services posted double-digit gains this month.
Uncertainty over whether they'll end up as victims or beneficiaries of the rise of AI hasn't lifted yet. This invites speculative bets. Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]