AEM shares continue fall; CSE tumbles 8.2%

AEM Holdings shares continued their decline on Wednesday (Oct 14) in Singapore, while other chip stocks also experienced a downturn. The company's stock fell by 4.4 percent to S$9.57 at 2:50 pm, down 8 percent from the previous day. Systems integrator CSE Global suffered a significant drop, falling 8.2 percent to S$1.01. UMS Integration and Frencken also saw their stocks decline, by 3 percent and 1.7 percent respectively, closing at S$2.35 per share.

The Singapore chip market has benefited from the global surge in artificial intelligence investments, but concerns about the sustainability of this trend have grown. American chipmaker Broadcom's CEO, Hock Tan, compared AI investor sentiment to gambling and cautioned of potential funding shortages. Despite the overall decline, Intel's shares rose by 1.4 percent, as AEM Holdings is a key customer for the company.

ASML, a Dutch semiconductor equipment manufacturer, reported a more than doubling of net profit year-on-year and raised its annual revenue forecast for the third time this year, offering some reassurance for the industry.