Chip stocks slide in US and Asia as AI jitters rattle investors
Global stock markets, particularly in South Korea and the US, experienced a sharp decline as investor confidence in AI-related technology stocks wavered. The sell-off was exacerbated by volatility in major chip manufacturers like Samsung and SK Hynix, following a period of rapid growth.
Why it matters
The volatility highlights the sensitivity of global financial markets to the performance of the AI sector and the potential risks associated with high-concentration tech investments.
Image source, AFP via Getty Images By Osmond Chia , Business reporter and Mitchell Labiak , Business reporter Published 28 July 2026, 04:49 BST Updated 5 hours 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, closing 10.8% lower.
The slump was led by technology firms, with Samsung Electronics and SK Hynix both falling by more than 13%.
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.
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