18:05 - 5.11.2025

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November 5, Fineko/abc.az. The total market capitalization of Bloomberg index, which tracks shares of the Philadelphia Semiconductor Index (PSI) and Asian microchip manufacturers, declined by $500 billion as a result of late correction in the chip manufacturing sector.

ABC.AZ reports that the cause of the wave of sales was Palantir's poor financial outlook.

The results and forecasts of Advanced Micro Devices (AMD) after the market close also had negative impact on Wednesday's trading session in Asian markets, prompting the same reaction.

As a result, concerns have spread to the entire artificial intelligence (AI) manufacturing sector, with Samsung shares down 4% this morning and TSMC shares down 3.5%.

Investors have been discussing possible correction because of revaluation of AI companies for some time. PSI index is currently traded at the price of 28-fold higher than future earnings, while the average over the past 5 years has been 22-fold higher.