Asian tech stocks faced a significant sell-off on Monday, driven by a decline in investor confidence regarding AI-linked companies. The U.S. tech-heavy Nasdaq saw a drop of over 4.5% last week, impacting major players in Asia. South Korea's Samsung Electronics and SK Hynix fell by 5% and 2%, respectively, contributing to an 8% plunge in the Kospi Index, where these firms represent over 40% of the total. In Taiwan, Taiwan Semiconductor Manufacturing Co (TSMC) dropped 2.1%, while Hon Hai Precision (Foxconn) saw a 5.1% decline. Japan's SoftBank Group experienced a 7.5% decrease, alongside Tokyo Electron and Advantest, which fell by 6.7% and 5%. This downturn follows a recent rally in tech stocks, which had been buoyed by optimism surrounding AI demand. The sell-off was exacerbated by Broadcom's disappointing revenue report, which negatively affected the entire tech sector, leading to a reported loss of approximately $1.8 trillion in market capitalization for the S&P 500. Despite this, UOB noted that tech and software companies would remain in focus due to an upcoming major IPO on the Nasdaq.