Global Chip Selloff Erases $500 Billion in Value as Fears Mount

The global selloff in semiconductor stocks accelerated on concern over lofty valuations for some of the artificial intelligence boom’s biggest winners.

Memory makers Samsung Electronics Co. and SK Hynix Inc. dragged South Korea’s benchmark Kospi down as much as 6.2% Wednesday before it pared much of the loss. Japan’s Advantest Corp. dropped as much as 10% while Asia’s largest stock Taiwan Semiconductor Manufacturing Co. fell more than 3%. All are suppliers to Nvidia Corp.

The moves trimmed roughly $500 billion in combined market capitalization from the Philadelphia Semiconductor Index on Tuesday and a Bloomberg gauge tracking Asia chip stocks on ...