(Bloomberg) -- Asian technology stocks slumped after Apple raised prices for its products, stoking concern that rising component prices will curb demand for devices and eventually slow the memory chip rally that has powered much of the AI trade.
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South Korean memory chip giants SK Hynix Inc. and Samsung Electronics Co. both slid more than 8%. Their Japan-based peer Kioxia Holdings Corp. sank as much as 12%. That led to a 6.4% drop in the MSCI Asia Pacific Infotech gauge. Futures on the Nasdaq 100 Index declined 1.5%.
Investors are reassessing whether soaring memory prices, driven by relentless AI demand, may begin to choke off spending by raising costs for electronics makers and consumers alike. Apple's price hikes offered one of the clearest signs yet that the industry's pricing power may come at the expense of future demand, prompting a broad recalibration across AI-linked semiconductor stocks.
"Markets are no longer treating memory strength as an automatic positive for the whole AI trade," said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. "It validates AI infrastructure demand, but it also raises the cost of building and consuming AI."
"The risk is that a stronger memory cycle today starts to slow the broader AI trade tomorrow. And the market is starting to price that," she said.
Apple on Thursday raised prices of all Macs, iPads, home devices and the Vision Pro, seeking to offset cost hikes caused by a shortage of memory chips and storage. The company's shares fell 6.1%, their biggest drop since April 2025. Among Apple's Asian suppliers, Taiwan's MediaTek Inc. fell as much as 10%, while Hon Hai Precision Industry Co. dropped 3.7%.
Microsoft Corp. on Thursday announced a third price increase for its Xbox video-game consoles in another example of the component shortage crisis that has driven up the cost of consumer tech products.
Sentiment toward Asian tech shares was also hurt by news that OpenAI may hold off on an initial public offering until next year. SoftBank Group Corp.'s stock fell as much as 14% in Tokyo, on concern the company which is a prominent backer of OpenAI, may face delayed returns.
"OpenAI's potential IPO delay reflects the impact of recent tech stock volatility on retail enthusiasm," said Fabien Yip, market analyst at IG International. "This creates a reality check on AI valuations, directly hitting SoftBank and overspilling to the broader tech sector."