Asian chip stocks slide as disappointing Qualcomm, Arm earnings weigh

Asian semiconductor shares fell on Thursday, with Japanese and South Korean chipmakers among the hardest hit, as investors assessed mixed earnings and outlooks from U.S. chip designers Qualcomm and Arm amid growing concerns over returns on artificial intelligence investments.

In contrast, Chinese semiconductor stocks were mostly higher, bucking the regional technology selloff as Beijing’s latest market-support measures boosted demand for domestic chipmakers.

Qualcomm Incorporated (NASDAQ:QCOM) shares fell more than 9% by 04:12 GMT in extended U.S. trading on Wednesday after its fourth-quarter handset chip revenue missed expectations, highlighting pressure on its core smartphone business. 

Arm Holdings (NASDAQ:ARM) also reported quarterly revenue and earnings above analyst estimates, but its royalty revenue rose 8% to $670 million, below forecasts, tempering investor enthusiasm. Its shares slipped about 3% in after-hours trading.

The weakness added to pressure on Asian chipmakers already facing concerns over AI infrastructure spending. Investors have grown increasingly cautious about whether massive investments in data centres will translate into sustainable returns, particularly as political changes could introduce regulatory and permitting hurdles for new projects.

South Korea’s Samsung Electronics Co Ltd (KS:005930) slid 5.7%, while SK Hynix (KS:000660) plunged 7.4%, among the biggest drags on the benchmark.

Japan’s chip-testing equipment maker Advantest (TYO:6857) slumped more than 11%, while Lasertec Corp (TYO:6920) dropped 12.5%. Memory chipmaker Kioxia Holdings (TYO:285A) fell 9.2%, extending recent losses following disappointing earnings guidance.

In contrast, Chinese semiconductor stocks were mostly higher, bucking the regional technology selloff as Beijing’s latest market-support measures boosted demand for domestic chipmakers.