Asian investors are rotating away from high-flying semiconductor stocks and toward beaten-down value shares. The MSCI Asia Pacific value index has risen roughly 6% this quarter, while its growth counterpart has fallen about 2%, marking the widest value outperformance since Q1 2022. SK Hynix and Samsung Electronics plunged 14.7% and 13.4%, respectively, in a single late-July session, helping push the information technology sector down 5.6%. Asian financials have instead surged 12%. Value stocks trade at 10.8 times one-year forward earnings, below 17.9 times for US equities and 12.3 times for European stocks. Hedge fund manager Hao Hong said the rotation could broaden and last longer because the semiconductor downtrend is not finished. Earnings guidance will be the next test: stronger financial results and weaker AI-related revenue expectations from chip companies could extend the shift, while better-than-feared semiconductor guidance could help growth stocks recover. Intensifying competition from Chinese chipmakers, particularly in mature-node production, adds pressure to Korean and Taiwanese industry leaders.