Business · 2026-10-15 · Afternoon briefing

Global AI stock sell-off wipes $1 trillion from valuations

A global sell-off in artificial intelligence and semiconductor stocks deepened this week, wiping more than $1 trillion in value from 20 of the sector's most valuable companies. In the US, Nvidia fell 2.5%, AMD lost 6%, and Micron sank about 3.5% on Thursday as the tech-heavy Nasdaq Composite dropped 1.88%.

The rout extended across Asia and Europe. South Korean chipmaker SK Hynix plunged over 10% and Japan’s Advantest dropped nearly 14%. The sell-off follows a rise in US Treasury yields above 5%, fueling investor concern over the cost of financing the massive capital spending required for AI infrastructure. Broadcom's CEO had previously warned that financing could be a bigger challenge to expansion than chip shortages.

The market jitters are compounded by longer-term fears of a memory chip oversupply as early as 2029. Analysts, however, distinguish the pullback as a reaction to financing costs, not a fundamental drop in demand for AI. As one put it, the market is reacting to a "rate signal," not yet a "demand signal."

Summary written by Cup of News with AI from the sources below. Check the originals for the full story.

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• Here's what's driving this week's $1 trillion wipeout in chip stocks
• AI sell-off wipes $800B from Asia’s stock markets in a day
• Here's what top investing minds are saying about the latest global stock sell-off
• Stock Market Today (Oct. 15, 2026): S&P 500 edges lower as tech sell-off continues
• Nvidia Stock Falls Again as AI Chip Sell-Off Deepens Despite TSMC's Record Profit and Robust Demand Outlook

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