AI and Chip Stocks Extend Selloff as Japan Losses Spill Into US Premarket

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4▲1 ▼7Impact / 5
Summary · why it matters

AI and chip stocks were under pressure again Friday, with the selloff spreading from Japan to U.S. premarket trading. Japan's Nikkei 225 dropped 4%, led by Kioxia plunging nearly 16%, Tokyo Electron falling about 8%, and Advantest losing around 7%. That weakness quickly spilled into U.S.-listed chip stocks, with Nvidia, AMD, TSMC, Broadcom, Arm and Intel all trading lower before the bell. Adding to the pressure, Alibaba-backed Moonshot unveiled Kimi K3, a 2.8 trillion-parameter open-weight AI model that it says can compete with some of the strongest U.S. systems, reinforcing the sense that Chinese developers are moving faster than many investors expected.

Impact on assets 13

Semiconductors▼
Advantest Corp.
6857
▼ Negativerelevance

Advantest lost around 7% in Japan, part of the broad chip selloff.

Tokyo Electron Ltd.
8035
▼ Negativerelevance

Tokyo Electron fell about 8% in Japan, leading the selloff in chip equipment stocks.

Artificial Intelligence± Mixed
Alibaba Group Holding Ltd
9988
▲ PositiveTechnologyrelevance

Alibaba-backed Moonshot unveiled Kimi K3, a competitive AI model, positive for Alibaba's AI ambitions.

Advanced Micro Devices Inc
AMD
▼ NegativeCompetitionrelevance

Chinese AI model Kimi K3 from Moonshot (Alibaba-backed) competes with US AI systems, adding pressure on AMD as a chip supplier.

NVIDIA Corporation
NVDA
▼ NegativeCompetitionrelevance

Chinese AI model Kimi K3 competes with US systems, adding to sector selloff affecting Nvidia.