AEM shares down 7.7% as global chip stocks slide

[SINGAPORE] AEM shares fell as much as 7.7 per cent on Tuesday (Oct 13) after Chinese memory maker CXMT said that it had made progress on a memory chip design capable of storing more data.

The counter dipped as low as S$9.96 at 11.34 am, retreating S$0.83 from its Monday close. It later pared some losses to be 6.7 per cent down at S$10.07 as at 2.30 pm.

Its fall mirrored a drop in global chip stocks, with shares of major customer Intel down 3.2 per cent. Memory maker SanDisk’s shares fell 6 per cent, while Micron dropped 3.9 per cent and a US gauge of chipmakers was down 2.7 per cent on Monday.

Asian shares, including those of CXMT, were also affected. The Chinese memory maker fell 3.3 per cent as at 9.55 am in Shanghai, while SK Hynix shares were down almost 4 per cent in early trade in South Korea.

AEM in 2025 had said that it had secured one of the world’s three major memory chip companies – Samsung Electronics, Micron Technology and SK Hynix – as a customer.

“The selling pressure across artificial intelligence-related equities remains a defining feature of the market,” wrote Chris Weston, head of research at Pepperstone. “Semiconductor stocks have broken below recent trading ranges.”

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AEM runs the systems and equipment that test chips before they are deployed.

Its shares are up 487 per cent in the year to date, primarily driven by the AI trade.