WS #15757
A broad-based selloff in the semiconductor sector has deepened after Broadcom CEO Hock Tan described the current AI investment cycle as a 'casino.' The sell-off is not merely sentiment-driven but is being reinforced by fundamental competitive threats: Nvidia's market share in China has fallen to 34% as Huawei gains ground, while Chinese memory maker CXMT announced progress on proprietary transistor structures that rival Samsung and SK Hynix. This dual pressure of valuation skepticism and rising Chinese competition is forcing a repricing of AI hardware multiples across Asia and the US.
AI Trade Selloff and Chip Competition
A broad-based selloff in the semiconductor sector has deepened after Broadcom CEO Hock Tan described the current AI investment cycle as a 'casino.' The sell-off is not merely sentiment-driven but is being reinforced by fundamental competitive threats: Nvidia's market share in China has fallen to 34% as Huawei gains ground, while Chinese memory maker CXMT announced progress on proprietary transistor structures that rival Samsung and SK Hynix. This dual pressure of valuation skepticism and rising Chinese competition is forcing a repricing of AI hardware multiples across Asia and the US.