AI and chip stocks tumble across Asian markets on inflation and debt fears

A sell-off of AI-linked shares has hit global markets after US inflation data fueled fears of higher interest rates and the sector's debt burden.

• South Korea's Kospi fell more than 8%, triggering circuit breakers, while Japan's Nikkei 225 dropped 4.9%.
• US data showed annual inflation rose to 3.7% in September from 3.4% in August, leading investors to expect further Fed rate increases.
• TSMC reported third-quarter net profit up 68.7% year on year despite the rout in its shares.
• The IMF warned that the consequences of an AI share price correction could be global.
• TSMC's third-quarter net profit hit a record 763.1 billion Taiwan dollars ($23.59 billion), its sixth consecutive quarterly high.
• Nasdaq futures fell 1.1% on Thursday after the index posted its worst decline since July.
• TSMC's chief executive sounded a cautious note on an earnings call amid the sell-off.
• Analysts blamed slowing revenue growth at leading AI labs and competitive pressure from China for the rout.