Chip firms fall in US and Asia as AI jitters rattle investors
Global stock markets, particularly in the tech sector, have experienced a sharp sell-off as investors grow skeptical about the profitability of massive AI investments. Major chip manufacturers like Samsung and SK Hynix saw significant declines, while Apple surpassed Nvidia as the world's most valuable company.
Why it matters
The volatility in AI-related stocks reflects growing market anxiety regarding the long-term financial viability of the current AI infrastructure boom.
Image source, AFP via Getty Images By Osmond Chia Business reporter Published 11 minutes ago Shares in major chip firms have fallen sharply in the US and Asia as a sell-off in artificial intelligence-related stocks deepened.
Trading on South Korea's benchmark Kospi index was paused temporarily on Tuesday morning after sliding by 8%. It fell further after the 20-minute halt was lifted to trade around 10% lower.
The slump was led by technology firms, with Samsung Electronics and SK Hynix both falling by more than 10%.
It comes after AI chip giant Nvidia fell by 5% in New York on Monday, meaning it lost its position as the world's most valuable listed company to Apple.
The tech-heavy Kospi has been halted eight times so far this year under a stock market mechanism known as a circuit breaker, which is designed to calm panic selling.
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