Asian AI Stocks Fall 11%, Nvidia Revenue $96.22B

Key Takeaways

• <ul><li>Asian AI hardware stocks fell 11% last week while US semiconductor shares dropped 16% during an eight-session rout driven by rising borrowing costs and inflation fears</li><li>Nvidia reported $96.22 billion in quarterly revenue with a 66.2% operating margin, while AMD reported $11.54 billion with a 17.3% margin, showing different growth and risk profiles</li><li>Broadcom faces up to $29 billion in potential liability from backing customer compute lease obligations, though it generated $13.665 billion in free cash flow last quarter</li><li>The IMF's chief economist said global trade rose 8.3% between 2023 and 2025 but would have been closer to 4.6% without AI-related products</li><li>Anthropic researchers warned that self-replicating AI worms could spread across internet-connected devices and may become feasible by year-end</li><li>Willis Towers Watson launched an AI job matching feature inside its Rewards AI platform to help compensation teams benchmark roles more consistently</li><li>A report warns AI could eliminate up to 30% of jobs over the next decade as machine learning and autonomous robots displace workers</li><li>Atomic Machines emerged from six years of stealth mode with $250 million in funding and its PrimeSwitch relay for AI data center power systems</li><li>IREN stock fell below $28.77 support level amid struggles in its transition from Bitcoin mining to AI data centers, despite Microsoft deals</li><li>Only 22% of project-based firms have connected systems, making data readiness a major challenge for AI adoption in finance teams</li></ul>

Asia AI stock rally faces risk from rising borrowing costs

A sell-off in US tech stocks is exposing risks in Asia's AI supply chain. Rising borrowing costs could choke off the spending needed to sustain the AI boom. Oil prices surging to $110 a barrel has stoked inflation concerns. An eight-session rout in US semiconductor shares wiped about 16% off the sector's benchmark. Asian AI hardware stocks fell sharply despite strong demand for AI chips.

Asian AI hardware stocks plunge on financing cost fears

Asian AI hardware stocks face pressure as US tech selloffs raise concerns about borrowing costs. A Goldman Sachs basket of Asian AI hardware stocks fell 11% last week. US semiconductor stocks dropped about 16% in an eight-session rout. Oil prices reached $110 a barrel, adding to inflation worries. Investors question whether tech companies can sustain huge capital spending on data centers.

Asian AI stocks drop as financing costs threaten spending

Asian AI hardware stocks are under pressure from concerns about rising borrowing costs. The Goldman Sachs basket of Asian AI hardware stocks plunged 11% last week. US semiconductor stocks fell about 16% during an eight-session selloff. Oil prices hit $110 a barrel, fueling inflation fears. Investors now worry whether tech firms can fund massive data center expansion plans.

AI funding fears hit Asia's top tech supply stocks

A deepening US tech sell-off reveals risks in Asia's AI trade. Mounting financing costs could choke off spending needed to sustain the boom. Nan Ya Plastics fell 12% from a record high, Unimicron Technology dropped 14%, and Samsung Electro-Mechanics plunged 23%. CoreWeave bonds sank to distress levels as investors questioned its debt. TSMC, SK Hynix and Samsung Electronics represent nearly one-third of the MSCI Asia ex-Japan Index.

Asian AI stocks fall amid rising financing cost worries

Asian AI hardware stocks face mounting pressure from concerns over borrowing costs. The Goldman Sachs basket of Asian AI hardware stocks fell 11% last week. US semiconductor stocks dropped about 16% in an eight-session rout, the worst since April 2025 for the Nasdaq 100. CoreWeave shares slumped 25% in a week amid debt worries. TSMC, Samsung Electronics and SK Hynix make up nearly one-third of the MSCI Asia ex-Japan Index.

Nvidia and AMD AI margins compared under pressure

Nvidia reported $96.22 billion in quarterly revenue with a 66.2% operating margin, while AMD reported $11.54 billion with a 17.3% margin. A five-point margin drop would cut Nvidia's operating income by 7.5% but AMD's by 29.0%. Nvidia has a larger profit cushion, while AMD has more room for margin growth if its data-center business expands. Nvidia traded at about 41 times free cash flow and AMD at 109 times. Hedge fund interest rose for both companies.

Broadcom's $29 billion AI lease backstop risk examined

Broadcom faces a maximum potential liability of about $29 billion from backing customer compute lease obligations, with no payments made yet. The company generated $13.665 billion in free cash flow in its latest quarter, and held $23.975 billion in cash as of August 2. AI semiconductor revenue reached $16.7 billion in the quarter. Broadcom traded at about 42 times trailing free cash flow at October 15 prices. The risk depends on customer defaults, recoveries and future cash generation.

WTW launches AI job matching tool for compensation teams

Willis Towers Watson launched an AI powered job matching feature inside its Rewards AI platform. The tool uses proprietary job content and survey methodology to help compensation teams benchmark roles more consistently. It connects to WTW's AI Workforce Transformation approach and ties work redesign, skills evolution and total rewards into one workflow. The key near term factor remains execution on the broader Propel AI Acceleration Plan. WTW's consensus points to revenues of US$11.9 billion and earnings of US$2.0 billion by 2029.

AI could eliminate up to 30% of jobs in next decade

A report warns that AI use in the workforce could lead to a loss of up to 30% of jobs over the next decade. Machine learning and autonomous robots are displacing human workers across industries. The report highlights the need for workers to learn new skills to stay relevant. Some experts believe AI will also create new jobs, but the future of work remains uncertain. Careful planning is needed to reduce the negative effects of AI on employment.

Deltek CFO discusses AI's role in finance leadership

Heather Larkin, CFO at Deltek, says AI is pushing finance teams to move from reporting numbers to shaping business performance. AI helps finance teams unlock insights from financial and operational data for faster decisions. Larkin stresses that AI needs good data, clear governance and measurable ROI. Only 22% of project-based firms have connected systems, making data readiness a big challenge. She advises finance leaders to build strong foundations before adopting autonomous AI agents.

World leaders discuss AI growth and risks at IMF-World Bank meetings

Experts and policymakers met at the IMF-World Bank annual meetings in Bangkok to discuss AI's role in global growth. The fund's chief economist Silvana Tenreyro said global trade rose 8.3% between 2023 and 2025. She said that figure would be closer to 4.6% without AI-related products. Leaders warned that reduced investment in AI could create economic risks.

Anthropic warns about self-replicating AI worms and security risks

Anthropic researchers published a report warning about self-replicating AI worms. These worms could spread across internet-connected devices like smart televisions without human help. The researchers said current trends could make AI worms feasible by the end of the year. Security experts debated the threat level, with some urging stronger cybersecurity preparation.

IREN stock falls below key support amid AI data center pivot struggles

IREN, formerly Iris Energy, is a Bitcoin mining company shifting to AI data centers. It has secured deals with Microsoft but faces major headwinds. Its stock dropped below the key support level of $28.77. Technical indicators like a death cross pattern suggest further decline may occur. Gartner noted challenges in the company's transition.

AI is too big to fail but bubble concerns persist in US market

A market commentary addressed concerns that AI is a growing bubble similar to the 1990s tech bubble. The author suggested bond markets are helping regulate AI investment by widening credit spreads for riskier borrowers like CoreWeave and Oracle. Rising borrowing costs could deflate the AI bubble without a sudden burst. The piece argued AI has become too large to collapse entirely.

Emeryville AI startup Atomic Machines emerges with $250 million funding

Atomic Machines, an Emeryville AI manufacturing startup, came out of six years of stealth mode with $250 million in funding. Founded by former Amazon and Uber executive Jeff Holden, it created the Matter Compiler platform. Its first product PrimeSwitch is a high-speed relay for 800-volt power systems used in AI data centers. The company plans to hire for dozens of positions.

Sources

• AI trade reversal pierces Asia’s star picks-and-shovels stocks
• Asian AI stocks fall as rising financing costs threaten spending boom
• Asian AI stocks fall as rising financing costs threaten spending boom
• AI funding fears puncture rally in Asia’s high-flying picks-and-shovels stocks
• Asian AI stocks fall as rising financing costs threaten spending boom
• Nvidia vs. AMD: Which AI Business Has More Room for Margins to Fall?
• Broadcom’s $29 Billion AI Backstop: How Much Risk Does the Cash Flow Cover?
• Should New Fund Stake Require Action From WTW Stock Investors?
• Is AI coming for your money—or all money?
• Heather Larkin, EVP CFO at Deltek on AI and Finance
• World leaders weigh on AI's role as driver of growth, its risks
• What are self-replicating ‘AI worms’, and why is Anthropic worried about them?
• IREN Stock Drops Below Key Support as AI Pivot Faces Major Headwinds
• US MARKET CALL: Yes, AI Is Too Big To Fail
• Oct. 1–15 Emeryville Newswire: $250M AI Startup, Ratio Campus Sale and Homicide Investigation