AI Fears Hit Chip Stocks, Asia Markets Mixed

Chip stocks fell sharply on Tuesday, dragging down Asian equity markets. Investors grew concerned that the recent surge in artificial-intelligence enthusiasm may be losing steam. The decline was led by semiconductor companies, which had benefited heavily from AI-driven demand. Analysts said the sell-off reflects a broader worry that AI-related growth expectations may have become too high. Other sectors showed mixed results. Some markets in Asia, including Japan and South Korea, saw slight gains, while Hong Kong and Shanghai edged lower. The shift in sentiment highlights the market’s sensitivity to AI industry prospects, which have been a key driver of global stock gains in recent months.