As global chip sell-off intensifies, US tech stocks may decline

According to Odaily Planet Daily, U.S. technology stocks are expected to fall as global semiconductor stocks face a sell-off and concerns over artificial intelligence investments intensify due to increased competition from Chinese manufacturers. During Asian trading hours, South Korea's KOSPI index plummeted 11%, with shares of memory chip giants Samsung Electronics and SK Hynix both dropping over 13%. Japan's Nikkei 225, which has a high weighting in chip stocks, and Taiwan's Taiex index both fell by about 4%.

Vincent Juvyns, Chief Investment Strategist at ING Group, stated: "It is entirely reasonable for investors to reduce their positions in semiconductor stocks; now is a good time to take profits and diversify asset allocation." However, given that the industry's earnings outlook remains bright for the coming years, Juvyns still advises clients to "maintain their investment positions." He added: "I view this sell-off as a normal adjustment phase within a long-term growth cycle." Meanwhile, investor positioning risk is also on the rise. Data from Citigroup shows that long positions in the Nasdaq 100 are currently still in a loss, increasing the risk of further market correction. (Jinshi)