Chip Stocks Plunge Amid AI Earnings Jitters

Investors have been cutting exposure to technology shares ahead of key earnings this week that will test confidence in the artificial intelligence trade. As a result, chip stocks have suffered outsized losses globally.

The decline extends a recent selloff in semiconductor giants on both Wall Street and Asia. SK Hynix Inc., for example, fell 4.5% while Samsung Electronics Co. dropped 2.7%. MSCI's broader Asia Pacific gauge slipped 0.5%, echoing the decline of chip stocks on the US market.

The downturn is in anticipation of upcoming earnings reports that will give insight into companies' performance and their reliance on artificial intelligence technology. Despite this, Bitcoin advanced as investors reassess their portfolios.