Cameron Winklevoss, co-founder of Gemini, urged investors to shift focus toward Bitcoin (BTC) and Zcash (ZEC) following a sharp downturn tied to the AI trade. This call came as South Korea’s Kospi index plummeted nearly 11%, triggering a 20-minute trading halt. Major tech players like Samsung Electronics and SK Hynix suffered losses exceeding 13% and 14% respectively.
China’s Tech Surge and Deep Ultraviolet Lithography Spark Market Jitters
The selloff appears linked to two China-related developments. Changxin Memory Technologies (CXMT), a DRAM manufacturer, saw its Shanghai STAR Market listing soar 466%, granting it a valuation near 3.3 trillion yuan and surpassing the Industrial and Commercial Bank of China as the most valuable mainland-listed company. CXMT is projected to hold 7.67% of the global DRAM market by 2025, ranking just behind Samsung, SK Hynix, and Micron.
Adding to the tension, reports surfaced that a Chinese state-backed firm has commenced production of immersion deep ultraviolet (DUV) lithography machines, critical technology targeted by Western export restrictions. These events reversed a chip sector rebound that had been steady since mid-July.
Meanwhile, deVere Group CEO Nigel Green criticized the AI trade's fundamentals, pointing to circular financing involving Nvidia, OpenAI, and Oracle. He argued that the same dollar cycles through these companies multiple times, inflating revenue figures without reflecting real demand. However, some of Green’s claims don’t fully align with company filings, such as Nvidia’s market cap and Oracle’s performance obligations, which show solid financial backing and ongoing commitments.
Asian tech stocks were not alone in the downturn. Japan’s Nikkei 225 dropped about 4%, with Tokyo Electron and memory manufacturer Kioxia falling close to 11% and 18% respectively. These declines shows the fragile state of tech equities amid evolving trade dynamics and geopolitical factors.
This material is informational and does not constitute financial advice.
