Chip shares fall in US and Asia as AI concerns hit investors
Technology stocks dropped across major markets, with South Korea’s Kospi briefly halted after a sharp morning decline.
Shares in chipmakers fell in the United States and Asia on Tuesday as investors reassessed enthusiasm around artificial intelligence-linked stocks. In South Korea, trading on the Kospi was briefly suspended after the index dropped 8% in morning trade.
The sell-off spread through markets that have benefited from demand for semiconductors used in AI systems. The BBC reported that the declines reflected growing investor caution over valuations in the sector.
South Korea’s market pause came after the benchmark index hit the threshold that triggers a temporary stop in trading. The move underscored how heavily the country’s stock market is exposed to chip companies.
The weakness in chip shares followed a period of strong gains for companies tied to AI infrastructure, leaving investors more sensitive to signs that prices may have run ahead of earnings.
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