AI Selloff Wipes 10% Off Samsung as Korea Halts Trading

AI Selloff Wipes 10% Off Samsung as Korea Halts Trading

A global panic over artificial intelligence spending triggered a trading halt in South Korea and a 5% drop in Japan's Nikkei 225, with chip giants Samsung and SK Hynix leading the rout.

· 2 min read ·
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A wave of selling hit global markets Tuesday as investors lost confidence in the artificial intelligence boom, triggering a trading halt in South Korea and sharp declines across Asia.

South Korea's Kospi index fell so fast that trading was stopped [262494]. In Japan, the Nikkei 225 index sank 5% [262494]. The selloff followed a heavy decline on Wall Street overnight, with investors rapidly pulling money out of technology companies focused on AI [262494].

Memory chip stocks suffered the worst damage. Samsung Electronics closed down 7.4%, while SK Hynix dropped 10.1% in Seoul [261344]. Chinese rival ChangXin Memory Technologies also fell [261344]. The decline extended a days-long slide even as soaring prices drive strong quarterly earnings across the industry [261344].

The panic was fueled by a warning from Broadcom CEO Hock Tan, who said AI investing has turned into a "casino" mentality [261252]. His comments triggered a sell-off in chip stocks across Asia, with Samsung and SK Hynix leading the decline [261252].

Investors are growing nervous about the massive scale of spending on artificial intelligence and whether those investments will pay off [261252]. South Korea's stock market fell more than 6% on Tuesday, led by semiconductor companies that make up a large share of the country's market [260753]. The selloff reflects worries about growing competition from China and AI stock prices that have risen too high [260753].

The retreat extends beyond stocks. Investors are pulling back from funding the AI infrastructure boom after months of record bond sales [259282]. Companies building data centers and AI systems have borrowed heavily to pay for the expansion, and buyers of that debt are growing cautious [259282]. The shift tests whether the AI buildout can keep its pace without easy access to cheap financing [259282].

Sources

AI Panic Erases Billions: Asian Markets Crash, Trading Halted #262494AI Boom Doubt: Samsung, SK Hynix Shares Plunge 7-10% #261344AI investing is a 'casino,' Broadcom boss warns as chip stocks slide #261252AI bubble fears wipe 6% off South Korea's chip stocks #260753AI debt boom stalls as investors get cold feet #259282

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