Asia's AI hardware stocks post worst week since July as financing fears spread from Wall Street

Asia's AI supply-chain stocks had their worst week in three months as a selloff in US technology shares raised concern that higher financing costs could choke off AI infrastructure spending. A Goldman Sachs basket of Asian AI hardware stocks fell 11% in the week to Friday, October 16, its steepest weekly decline since mid-July.

The damage was concentrated in component makers that had led the rally. Samsung Electro-Mechanics fell 23% and Taiwan's Unimicron Technology 14%, while Nan Ya Plastics ended 12% below its record high. In the US, chip stocks fell for eight sessions in a row, the Nasdaq 100 had its worst week since April 2025, and CRWV dropped 25% amid worries about its debt obligations. Brent crude at $110 a barrel added to inflation and borrowing-cost fears.

Investors are split on how deep the problem goes. GAM's Jian Shi Cortesi said higher financing costs could delay infrastructure projects, while Federated Hermes' Kunjal Gala said there is little evidence financing pressure has weakened semiconductor orders. The concentration risk is large: TSM, Samsung Electronics and SK Hynix make up nearly a third of the MSCI Asia ex-Japan Index.

What to watch: whether the debt-funded AI builders such as CoreWeave can keep raising money on workable terms, and what this week's big-tech earnings say about capital spending plans. A cut to those plans would hit Asian suppliers directly; steady guidance would support the view that this is a valuation reset rather than a demand break.