Chip stocks slide in US and Asia as AI jitters rattle investors
Global stock markets, particularly in Asia, experienced a sharp decline as investor confidence in AI-related technology stocks wavered. The sell-off was triggered by concerns over high valuations and potential cooling in the AI sector, leading to significant drops for major firms like Samsung and SK Hynix.
Why it matters
This volatility highlights the fragility of the current AI-driven market rally and the potential for systemic risks when retail investment is heavily concentrated in a few tech giants.
Share Save Add as preferred on Google Osmond Chia , Business reporter and Mitchell Labiak , Business reporter AFP via Getty Images 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.
The tech-heavy Kospi has been halted multiple times so far this year under a stock market mechanism known as a circuit breaker, which is designed to calm panic selling.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in