Hitachi Energy India shares slumped 5% on Tuesday, the biggest drag among AI‑infrastructure names, according to NSE data. Despite the dip, the stock is still up 60% year‑to‑date, reflecting the aggressive rally that has pushed the sector beyond its historical multiples.
GE Vernova T&D and CG Power also posted declines of 4% and 2.5% respectively, while Siemens Energy India lost 3% in the same session. Those shares remain 30% and 20% higher YTD, underscoring a persistent, though tempered, upside.
Optical‑fibre names Sterlite Tech and HFCL trailed the broader sell‑off with 5% losses, even as their YTD gains of 300% to 1000% demonstrate the high‑growth potential investors had chased during the AI data‑center build‑out.
The downturn was part of a wider semiconductor sell‑off: Kioxia Holdings fell 12%, while SK Hynix and Samsung also saw sharp declines that dragged the KOSPI lower. The catalyst was an announcement that China’s CXMT chip competes directly with the Korean giants.
Broadcom CEO Hock Tan’s comparison of AI‑stock sentiment to a casino and his warning that financing the massive build‑out will be the next hurdle sent Nasdaq futures down more than 250 points, reinforcing the mood of caution.
Going forward, investors are watching upcoming earnings and guidance from these names closely, as valuation pressure mounts and the sector seeks to balance the high‑growth narrative with realistic capital‑expenditure plans.