AI chip sell-off hits Nasdaq, sends South Korea’s Kospi down 10.8%
Why it matters: The slide reflects investor worries over heavy AI spending and rising Chinese competition ahead of major US tech earnings.
A global sell-off in AI-linked chip stocks deepened Tuesday, dragging the Nasdaq lower at the open and pushing South Korea’s Kospi to a 10.8% loss after a temporary trading halt. Samsung Electronics and SK Hynix each fell more than 13% in Seoul, while Japan’s Nikkei 225 closed nearly 4% lower. The retreat followed a 5% drop in Nvidia on Monday, which knocked it behind Apple as the world’s most valuable listed company. Investors have grown more cautious about whether huge data-center spending tied to AI will deliver returns, while some fund managers also pointed to intensifying Chinese competition. In Shanghai, memory chipmaker ChangXin Memory Technologies surged in its market debut even as broader chip shares slumped.