Semiconductor Stocks Decline, Broadcom CEO Calls Investments 'Gambling'

Recently, the decline in semiconductor stocks deepened after Broadcom's CEO Hock Tan compared artificial intelligence (AI) investments to gambling. Following this statement, losses were experienced in Asian markets. In particular, South Korea's Kospi index fell by 6.25% as investors sold semiconductor stocks. In Japan, the Nikkei index dropped by 1.8%, while the Taiwan stock exchange lost around 2%. Samsung Electronics shares fell by 7.4%, and SK Hynix declined by 10%. CXMT, a China-based memory chip manufacturer, announced significant progress on its new DRAM architecture. This raised concerns among investors that CXMT could compete with global memory chip manufacturers like Samsung, SK Hynix, and Micron. CXMT made a successful debut on the Shanghai stock exchange in July, producing DRAM chips that provide the data storage needed for artificial intelligence applications. Additionally, the technology-heavy Nasdaq index in the US stock market also showed a decline of 0.35%, dropping to 30,556 levels. Micron Technology lost 4.8%, Advanced Micro Devices 1.4%, and Nvidia 0.8%. However, the Dow Jones index rose by 0.4%, following major US companies. The FTSE 100 index in London reached its highest level in three weeks, boosted by gains in financial stocks. Hock Tan stated at a conference in Singapore that the appeal of the AI sector has led investors to create high expectations without fully understanding the topic. Tan noted that most AI companies are still operating at a loss, emphasizing that despite OpenAI's annual revenues reaching up to $50 billion, it does not guarantee profitability in the long term. This situation continues to create uncertainty and concern in the investment world, as it puts pressure on the future of high-tech companies.