Asian Tech Stocks Slide as Broadcom-Led Sell-Off Sparks AI Sector Retreat

 Technology stocks across Asia fell sharply on Friday after a steep decline in shares of Broadcom triggered a broader sell-off in artificial intelligence-linked companies, prompting investors to shift funds toward more defensive sectors.

The weakness followed losses on Wall Street, where semiconductor stocks came under pressure after Broadcom's latest earnings report failed to meet the market's elevated expectations despite strong revenue growth and rising AI-related sales.

The decline was most pronounced in South Korea, where technology and semiconductor companies led market losses.

Shares of Samsung Electronics dropped nearly 7%, while memory chipmaker SK Hynix fell more than 8% as investors reduced exposure to AI-related stocks.

Other South Korean technology firms also recorded significant declines. Samsung SDI lost more than 7%, while LG Display, LG Innotek, and Seoul Semiconductor each posted substantial losses.

Japanese technology stocks also came under selling pressure as investors reassessed growth expectations within the artificial intelligence sector.

Chip equipment maker Tokyo Electron fell more than 6%, while semiconductor testing specialist Advantest declined over 5%.

Meanwhile, electronic components manufacturer Murata Manufacturing dropped nearly 5%, and industrial robotics leader Fanuc lost more than 4%.

In Taiwan, several major technology exporters also traded lower. Hon Hai Precision Industry, widely known as Foxconn, declined 1.7%, while contract manufacturer Pegatron fell 2.6%. Smartphone camera lens supplier Largan Precision lost more than 4%.

However, chipmaking giant Taiwan Semiconductor Manufacturing Company bucked the broader trend and edged higher, gaining 0.4% during trading.

The regional sell-off followed a difficult session for semiconductor stocks in the United States. Broadcom shares plunged more than 12% after investors reacted negatively to the company's earnings outlook, despite reporting strong growth in revenue and artificial intelligence-related sales.

The weakness spread across the broader semiconductor sector, dragging down several major technology names. Shares of Arm Holdings fell more than 4%, while Micron Technology declined nearly 8%.

Market analysts said the pullback reflects profit-taking after months of strong gains among AI-related companies.

Andrew Jackson, equity strategist at Ortus Advisors, noted that a correction among recent market winners had become increasingly likely following the sector's rapid rally.

The latest decline highlights growing investor sensitivity to earnings guidance from companies closely tied to artificial intelligence development. As expectations continue to rise, market participants are increasingly demanding evidence that AI-driven growth can continue at the pace seen over the past year.

While the broader long-term outlook for artificial intelligence remains positive, Friday's market action underscored concerns that valuations across parts of the sector may have moved ahead of near-term fundamentals.