Asian AI stocks fall as rising financing costs threaten spending boom - Bloomberg

Asian AI hardware stocks are experiencing a selloff as rising financing costs and a decline in U.S. technology shares raise concerns about the sustainability of global AI infrastructure spending, according to Bloomberg analysts. The Goldman Sachs basket of Asian AI hardware stocks saw its steepest weekly decline since mid-July, dropping 11% last week, while the Nasdaq 100 recorded its worst week since April 2025.

Factors contributing to the pressure include an eight-session selloff in U.S. semiconductor stocks that erased about 16% from the sector’s benchmark, and rising oil prices reaching $110 a barrel, which heighten inflation concerns and fears of sustained elevated borrowing costs. Despite an upbeat revenue outlook from Taiwan Semiconductor Manufacturing Company (TSMC), investors are questioning whether major technology companies and AI infrastructure operators can sustain the significant capital expenditure needed for data center expansion.

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