Semiconductor stocks fall globally as investor confidence in AI spending weakens

Chip company shares fell sharply across US and Asian markets in mid-2026. Investors have grown worried that spending on artificial intelligence may not be as large as expected. The PHLX Semiconductor Index dropped 4.65% and is now 20% below its June peak. SK Hynix lost over 15% in Seoul, and Samsung fell 5.8%. Micron and SanDisk also declined in US trading. South Korea's main stock index fell 3.8%, and Hong Kong's market dropped around 2%. Chinese technology companies recently released new AI models that need fewer US-made chips, which reduced confidence in future demand. Chip stocks had risen about 83% this year before the selloff. Even strong financial results from major producers like ASML and Taiwan Semiconductor could not stop the decline.