Asian technology stocks fell broadly on Thursday, following a retreat in the US tech sector overnight, as volatility in the global tech industry continues to intensify.
A recent report from JPMorgan suggests that the selloff in Asian tech stocks has not interrupted the artificial intelligence investment cycle.
On Friday, July 24, 2026, at the SK hynix office in Seongnam, South Korea, an LPDDR5X CAMM2 memory module equipped with a 12-layer stacked HBM4E storage chip was displayed. As the South Korean stock market becomes a barometer of global AI sentiment, leveraged funds are betting on chip stocks, causing dramatic market swings. The stock performance of SK hynix and Samsung Electronics will test investor confidence in memory chips.
In Japan, SoftBank Group fell 4.36%; semiconductor equipment maker Tokyo Electron dropped more than 5%; Advantest declined 2.14%; and Kioxia, a domestic memory chip manufacturer, tumbled 8.84%. In South Korea, SK hynix fell 9.71%, Samsung Electronics closed down 6.13%, and Seoul Semiconductor dropped 4.27%. The world's largest chip foundry, Taiwan Semiconductor Manufacturing Co (TSMC), declined 1.46%.
Recent tech stock volatility has heightened, with the heavily semiconductor-weighted South Korean market frequently experiencing sharp swings, oscillating between selloffs and record highs. Despite the increased volatility, analysts remain optimistic about the tech sector's outlook. In a Wednesday research note, JPMorgan stated that while Asian tech stocks faced a selloff, the AI investment cycle has not been disrupted. The firm noted that although investors are reducing positions due to concerns about the sustainability of large-scale AI capital expenditures, major cloud providers are not expected to cut their investments. JPMorgan commented, "Setting aside short-term stock price fluctuations, we have not yet seen fundamental indicators suggesting a significant weakening of the industry over the next 6 to 12 months."
A report released by S&P Global on August 5 indicated that AI and defense spending are driving global economic growth, with "the tech industry becoming an increasingly important growth driver." S&P Global noted that the output sub-index of the global tech equipment manufacturing PMI for July recorded its fastest growth since May 2021. The report added, "Demand for software and related information technology services has risen simultaneously, with the tech industry achieving its strongest growth in ten months." Asian tech stocks surged sharply on Wednesday, with SoftBank Group gaining more than 13% that day.
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