Nikkei Slides as Semis Lead Global Risk-Off

The pressure comes amid broad losses in U.S. tech stocks and another leg lower in chip names, with traders increasingly questioning whether AI-related valuations have outrun near-term earnings power. South Korea’s KOSPI, another semiconductor-heavy market, fell 7%, underscoring how concentrated the unwind has become across the region.

Intel’s recent price action shows how violent the rotation has been inside semiconductors. The stock has fallen to $91.67 from $140.94 in late June, while its 14-day RSI sits at 32.5 and the MACD remains below its signal line, conventional technical indicators that point to persistent downside momentum after a sharp run-up earlier in the quarter.

For investors, the key issue is whether this is a temporary valuation reset or the start of a broader reversal in the AI trade. A sustained break in chip stocks would pressure equity indices far beyond Japan, while exporters, semiconductor suppliers and momentum funds could all face forced selling if the correction extends.

Energy is adding to the strain, with rising crude oil prices weighing on sentiment and threatening to keep inflation expectations sticky. That combination — weaker tech and firmer oil — is awkward for risk assets and leaves markets vulnerable to further swings if U.S. futures and Asian chip shares fail to stabilize.

The next catalyst is whether buyers return to semiconductors after the open or whether the selling cascade spreads into broader cyclicals and growth stocks. Traders will also be watching U.S. tech leadership, oil prices and any fresh signals on AI spending and chip demand for clues on whether this is a pause or a deeper reset.