Jul 28, 2026 · 6 min
Asian chip stocks tumble on Chinese tech advances as software rises
Kioxia Slides, SK Hynix Tumbles, BayCurrent Rises
The rapid evolution of Chinese chip manufacturing is reshaping global tech portfolios, forcing a high-stakes investor rotation from hardware to software.
- 1Reports of Chinese advancements in chip manufacturing equipment have triggered a massive selloff in major global semiconductor stocks.
- 2Extreme volatility in South Korean markets led to a dramatic circuit breaker halt during the hardware stock selloff.
- 3Investors are rotating capital out of hardware and into Asian software makers like Nomura Research and BayCurrent.
Don't miss
Anthony Stevens explains how South Korea's market volatility triggered a circuit breaker halt amid the massive hardware unwind.
The brief
Global semiconductor markets are facing intense volatility as reports of Chinese breakthroughs in chip manufacturing equipment trigger a massive selloff across major Asian hardware players.
The ripple effects of China's technological progress are hitting European giant ASML, while South Korean markets experienced extreme turbulence, including a circuit breaker halt.
Amidst the hardware rout, a quiet rotation is underway. Asian software makers like Nomura Research and BayCurrent are surging as investors pull capital out of hardware.
What was said on this episode
12 statements · 6 positive · 4 negative · 2 mixed
China may manufacture a wider range of chips at substantially higher capacity.
“it does point to the possibility that China will be able to manufacture a much wider range of chips with a much higher capacity”
Listen at 1:32
Chinese chip advances are severely pressuring simpler-chip companies across Japan.
“that is smashing kind of simpler chips across Japan”
Listen at 1:39
SK Hynix shares are down 13%.
“Hynix is down 13%”
Listen at 2:45
Samsung Electro Mechanics shares are down 17.5%.
“Samsung Electro Mechanics is down 17 and a half percent”
Listen at 2:54
Chinese DUV machines may enable China to build memory capacity offsetting its HBM disadvantage.
“What is in question here now is whether these Chinese duv machines allow China to build out massive memory capacity that offsets their HBM disadvantage”
Listen at 3:13
High-momentum trades outperformed earlier but have now sharply reversed.
“high momentum trades have been the standout performer in the year as the AI trade got going and now they've reversed really, really hard”
Listen at 3:37
The GS high-momentum long-short basket fell 7% for a second consecutive day.
“the GS high momentum long short basket was down 7% for second day in a row”
Listen at 3:45
Unwinding long AI-hardware positions forces investors to cover software shorts.
“As people unwind their long AI hardware space, they have to cover their software shots”
Listen at 3:55
The HS Tech trade is performing better than the ChiNext.
“the HS tech trade a lot better than the Chinext”
Listen at 4:04
Kingdee International Software is up 2.3%.
“Kingd International Software that's up 2.3%”
Listen at 4:07
Japanese software stocks are trading slightly higher.
“software in Japan is trading slightly up on the day”
Listen at 4:11
BayCurrent shares are slightly higher on the day.
“Bear Current is slightly up on the day”
Listen at 4:13
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Featuring
Anthony Stevens
ASML
JapanListen to the full episode and explore every guest, topic, and moment on PodLume.