Asian Chip Stocks Tumble as AI Rally Cools
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- Semiconductor stocks fell across Asia, dragging regional equities lower as investors turned skeptical that the AI-driven rally can withstand lofty valuations.
- South Korea's Kospi Index slumped 6% ahead of Friday's market holiday, with SK Hynix Inc. and Samsung Electronics Co. leading the losses.
- Japan's Nikkei 225 dropped 3%, deepening the regional retreat and dragging MSCI's Asia Pacific equities gauge down 1.2%.
- Oil prices declined alongside the equity selloff, adding to the broader risk-off mood across Asian markets.
- The Kospi serves as a bellwether for AI investments, making the 6% drop a notable reset in enthusiasm for the AI trade.
Why it matters: A 6% Kospi slump — led by SK Hynix and Samsung — marks a meaningful reset in AI-exposed valuations after months of record gains. With the Nikkei down 3% and MSCI Asia Pacific off 1.2%, the selloff shows investors are no longer willing to underwrite AI premiums without fresh earnings justification.
