Asian AI stocks plunge as Samsung, SK Hynix, and SoftBank tumble

Asian AI-related stocks plunged Friday as a Wall Street selloff spread across the region, exposing concerns over the costs of financing the industry's rapid expansion. Samsung Electronics fell up to 9.98% and SK Hynix 11.71% in early Seoul trading, while SoftBank dropped about 11% in Tokyo. South Korea's KOSPI index fell over 8%, triggering a 20-minute trading halt. The chipmakers later trimmed losses, but the cost of insuring SoftBank's debt against default hit a four-year high. The selloff followed Thursday's Nasdaq Composite drop of 5.52% and a 12.25% fall in the Philadelphia Semiconductor Index. Investors worry AI developers may not generate enough revenue to justify massive borrowing-funded spending, with possible US regulatory delays adding pressure. However, analysts called the selloff excessive, noting no confirmed collapse in AI memory demand or actual restrictions yet.