Fund manager Jian Shi Cortesi of GAM Investment Management says that higher financing costs could delay projects and trigger a valuation reset for Asian suppliers. These risks are intensifying as surging oil prices lead investors to scrutinize the trillions of dollars in borrowing used to build the current AI ecosystem.
Tuesday, October 20, 2026
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US Tech Selloff Exposes New Financing Risks for Asia AI Trade
Global Markets3 days ago
The industry benchmark for US semiconductor stocks has dropped about 16% after eight consecutive trading sessions of declines. This volatility reveals a fragility in the Asian AI trade, where climbing borrowing costs threaten the capital expenditure needed to maintain the expansion of artificial intelligence infrastructure. Mounting interest rates now put pressure on the hardware supply chain that has driven the region's recent stock market rally.
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