DeepSeek New models and AI financing concerns compound, as Asian chip stocks continue to weaken

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DeepSeek New models compound AI financing concerns, as Asian chip stocks fall for consecutive sessions

BlockBeats News,October 19, according to Bloomberg, Asian semiconductor stocks continued to weaken on Monday, with the Bloomberg Asia chip stock index falling by more than 2%, reaching its lowest level since July. TSMC, SK Hynix, and Japan's Advantest were the main drags.

Market concerns stem primarily from factors: first, financing pressure for U.S.SK AI AI infrastructure continues to intensify, CoreWeave's financing capacity has been questioned, and IPO expectations for Anthropic and Nscale have also cooled; second, China's DeepSeek released an update to its new model over the weekend, saying that it runs faster and consumes fewer resources, raising concerns that the storage capacity required by AI models could decline and chip demand could be affected.

The Korea Composite Stock Price Index (Kospi) posted its largest weekly decline since 2008 October last week. The index fell by more than 3%at one point on Monday before recovering some losses; Japan's Nikkei 225 Index fell 2.3%at one point, while Taiwan's Weighted Index fell 2%.

Kang DaeKwun, CEO of Life Asset Management, said that current market uncertainty is too high to determine when the South Korean stock market will bottom out, and financing for U.S. corporate AI projects is among the key risks. He noted that the earnings performance of South Korean chip companies remains highly dependent on continued U.S. corporate investment in AI infrastructure. Earnings reports from technology giants including Meta and Tesla this week will be an important window for assessing the momentum of AI capital expenditure growth.

Original link https://m.theblockbeats.info/flash/372483

Key points

According to the Bloomberg report cited in the article, Asian semiconductor stocks continued to weaken on Monday, with the Bloomberg Asia chip stock index falling by more than 2%, reaching its lowest level since July.
TSMC,SK SK Hynix, and Japan's Advantest were cited as the main drags.
The article said the market is concerned about financing pressure for U.S.AI infrastructure; CoreWeave's financing capacity has been questioned, while IPO expectations for Anthropic and Nscale have cooled.
The article said that DeepSeek released an update to its new model over the weekend and said it runs faster and consumes fewer resources.
The Korea Composite Stock Price Index fell by more than 3%at one point on Monday; Japan's Nikkei 225 Index fell 2.3%at one point, while Taiwan's Weighted Index fell 2%。
Kang DaeKwun said market uncertainty is too high to determine when the South Korean stock market will bottom out, and financing for U.S. corporate AI projects is among the key risks.
Kang DaeKwun noted that the earnings performance of South Korean chip companies remains highly dependent on continued U.S. corporate investment in AI infrastructure.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Chip stocks are facing types of concerns: whether U.S.AI projects can continue to secure funding, and whether AI models that consume fewer resources will reduce demand for storage and chips. These are currently mainly market expectations and do not mean that long-term demand has definitively declined.

Why it matters to readers

If AI infrastructure financing or capital expenditure slows, chip companies' future orders and earnings expectations could come under pressure; earnings reports from companies including Meta and Tesla can be used to assess AI capital expenditure growth momentum.

Beginners should distinguish between “share prices have already fallen” and “long-term chip demand will decline”: the former is the market performance reported in the article, while the latter remains an unconfirmed concern.

Risks and unknowns

DeepSeek The article provides no verification of whether the new model will actually reduce storage capacity and chip demand.
The article does not explain the specific basis for, or outcome of, the questions surrounding CoreWeave's financing capacity.
The actual arrangements following the cooling of IPO expectations for Anthropic and Nscale remain unclear.
Earnings reports from companies including Meta and Tesla, as well as AI capital expenditure performance, have not yet been released.
It remains impossible to determine when Asian chip stocks and the South Korean equity market will bottom out.

DeepSeek New models and AI financing concerns compound, as Asian chip stocks continue to weaken

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