{"id":65520,"date":"2026-07-28T02:08:18","date_gmt":"2026-07-28T06:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-tech-rout-deepens-as-chip-selloff-hits-asian-markets-orange-raises-guidance\/65520\/"},"modified":"2026-07-28T02:08:18","modified_gmt":"2026-07-28T06:08:18","slug":"global-tech-rout-deepens-as-chip-selloff-hits-asian-markets-orange-raises-guidance","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-tech-rout-deepens-as-chip-selloff-hits-asian-markets-orange-raises-guidance\/65520\/","title":{"rendered":"Global Tech Rout Deepens as Chip Selloff Hits Asian Markets; Orange Raises Guidance"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korean markets plummeted<\/strong> on Tuesday, with the <strong>KOSPI dropping over 8%<\/strong> and the <strong>KOSDAQ falling 8.7%<\/strong> to 698.48 points, triggered by a massive global selloff in semiconductor and technology stocks.<\/li>\n<li><strong>SK Telecom (<a href=\"\/stock\/SKM\">SKM<\/a>) shares plunged 16-17%<\/strong>, leading a broader tech retreat alongside memory giants <strong>Samsung Electronics (<a href=\"\/stock\/SSNLF\">SSNLF<\/a>)<\/strong> and <strong>SK Hynix (<a href=\"\/stock\/HXSCL\">HXSCL<\/a>)<\/strong>, which saw double-digit declines.<\/li>\n<li><strong>Orange (<a href=\"\/stock\/ORAN\">ORAN<\/a>) raised its full-year 2026 guidance<\/strong> for EBITDAaL to over 4% after a strong Q2 performance, providing a rare bright spot in the global telecommunications sector.<\/li>\n<li><strong>Geopolitical tensions escalated<\/strong> as Jordan intercepted multiple drones breaching its airspace, while <strong>Iran&#39;s Foreign Minister<\/strong> held urgent calls with Saudi and Omani counterparts regarding security in the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>Chinese President Xi Jinping<\/strong> met with Slovakian leadership to push for stronger ties in <strong>AI, the digital economy, and clean energy<\/strong>, even as global markets fretted over rising Chinese competition in advanced chipmaking.<\/li>\n<\/ul>\n<h2>Tech and Semiconductor Rout<\/h2>\n<p>The global selloff in semiconductor stocks intensified on Tuesday, July 28, 2026, as mounting concerns over the <strong>artificial intelligence (AI) spending boom<\/strong> and fresh signs of <strong>China\u2019s progress in advanced chipmaking<\/strong> sparked a wave of panic selling. South Korea\u2019s benchmark <strong>KOSPI<\/strong> index triggered market-wide circuit breakers after plunging more than 8%, while the tech-heavy <strong>KOSDAQ<\/strong> extended sharp losses to close down <strong>8.7% at 698.48 points<\/strong>.<\/p>\n<p>Major industry players were hit hardest; <strong>SK Hynix (<a href=\"\/stock\/HXSCL\">HXSCL<\/a>)<\/strong> dived 11.7% and <strong>Samsung Electronics (<a href=\"\/stock\/SSNLF\">SSNLF<\/a>)<\/strong> tumbled nearly 10%. Investors are increasingly skeptical of the massive capital expenditures required for AI infrastructure, particularly following reports that <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> may provide a <strong>$250 billion financial backstop<\/strong> for an OpenAI data center project, raising questions about circular funding risks.<\/p>\n<h2>Corporate Earnings and Strategic Moves<\/h2>\n<p>In contrast to the broader tech slump, French telecom giant <strong>Orange (<a href=\"\/stock\/ORAN\">ORAN<\/a>)<\/strong> reported robust Q2 2026 earnings, with <strong>EBITDAaL reaching \u20ac3.53 billion<\/strong>, beating analyst estimates of \u20ac3.51 billion. The company subsequently raised its full-year <strong>EBITDAaL growth target to above 4%<\/strong> (up from 3%) and increased its organic free cash flow outlook to approximately <strong>\u20ac4.3 billion<\/strong>.<\/p>\n<p>Meanwhile, <strong>SK Telecom (<a href=\"\/stock\/SKM\">SKM<\/a>)<\/strong> saw its shares nose-dive by roughly 17% during the Tuesday session. The decline reflects a broader rotation out of South Korean tech and telecom holdings as investors reassess valuations amid intensifying competition from Chinese firms like <strong>CXMT<\/strong>, which recently saw an explosive market debut.<\/p>\n<h2>Geopolitical Developments<\/h2>\n<p>Diplomatic and military tensions remain high across multiple fronts. In the Middle East, the <strong>Jordanian Military<\/strong> downed a drone following an airspace breach on Tuesday morning, marking a continuing trend of regional instability. Concurrently, <strong>Iran\u2019s Foreign Minister Abbas Araghchi<\/strong> held separate calls with his Omani and Saudi counterparts to discuss the &quot;insecurity in the <strong>Strait of Hormuz<\/strong>,&quot; emphasizing a need for joint diplomatic efforts to maintain maritime stability.<\/p>\n<p>In Europe, Ukrainian President <strong>Volodymyr Zelenskiy<\/strong> is reportedly prioritizing <strong>air defense and U.S. strategic cooperation<\/strong> in upcoming meetings with <strong>Donald Trump<\/strong>. This comes as <strong>President Xi Jinping<\/strong> hosted Slovak President Peter Pellegrini in Beijing, calling for &quot;equal dialogue&quot; and seeking to bridge China-EU disputes through cooperation in emerging technologies like <strong>AI and green energy<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korean markets plummeted on Tuesday, with the KOSPI dropping over 8% and the KOSDAQ falling 8.7% to 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