Asian Markets Tumble on AI Tech Selloff
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- AI sector faces investor pullback as concerns over valuation and execution risks trigger a tech-led sell-off in Asian markets
- Chip firms in both the U.S. and Asia declined sharply on renewed doubts about the pace and profitability of AI infrastructure spending
- Nikkei dropped 2.6%, weighed down by losses in semiconductor and metals companies, reflecting regional risk-off sentiment
- Asian stocks broadly tumbled, extending declines from prior sessions as the AI-driven rally reversed into a rout
- Oil extended its decline, adding pressure on energy-linked equities and contributing to the negative market backdrop
Why it matters: Chipmakers and tech investors face immediate valuation pressure as capital retreats from AI-driven growth bets. The 2.6% Nikkei drop signals a shift from momentum to risk aversion, altering near-term market dynamics in Asia.
