The Zhitong Finance App learned that storage concept stocks had the highest decline. As of press release, GigaYi Innovation (03986) fell 10.25% to HK$538.5; Lanqi Technology (06809) fell 7.47% to HK$257.8. The decline in storage-related ETFs widened, with the South doubling and Hynix (07709) falling 17.32% to HK$46.38; the southern doubling of Samsung Electronics (07747) falling 25.4% to HK$61.92.
According to news, during early trading in Tokyo on Friday, Kioxia's stock price plummeted 14%, down 51% from the previous month's high, and the market capitalization evaporated at least 29.5 trillion yen (181.7 billion US dollars). Since becoming the company with the highest market capitalization in Japan, the market value of memory chip manufacturer Kioxia has shrunk by half within a month, as investors increasingly worry that the AI-driven industry is rising too much. A strategist at Daiwa Securities said that the chip industry is clearly cyclical, and similar trends have played out many times in the past. It is already difficult for the market to continue to bet that profit growth will accelerate further, and investors chasing short-term returns may have settled their profits in time for the current stage.
Meanwhile, TSMC announced impressive Q2 results, but overnight, US stocks did not rise but fell. Andrew Jackson, strategist at Ortus Advisors, said that the US technology stocks and AI sector have once again experienced a complete sell-off because TSMC's earnings report was not seen by the market as sufficient to support the sector's further rise, but instead raised concerns about excessive spending in the AI field. However, Andrew Jackson believes that this round of sell-offs reflects concentrated liquidation of crowded positions in popular AI transactions, rather than a deterioration in the long-term fundamentals of the industry.