KOSPI Crash Signals AI Bubble Burst, Nasdaq 100 Next
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- KOSPI has reversed sharply after a near-parabolic climb this year, a move the author identifies as the opening shot of the AI bubble bursting, likely accelerated by leveraged speculation
- The Nasdaq 100 is almost perfectly correlated with the KOSPI because both indexes are heavily concentrated in semiconductor stocks riding the same AI-driven rally
- Falling token prices are flagged as the fundamental signal pointing to an imminent cut in AI capital expenditure, which the author frames as the trigger for the broader unwind
- Leveraged speculation is the mechanism the author singles out as likely to intensify the KOSPI crash and, by extension, the Nasdaq 100's exposure
Why it matters: If the KOSPI-Nasdaq 100 correlation holds, US semiconductor-heavy investors face direct downside from the same AI capex pullback already hitting Korean chip names; the author identifies falling token prices as the leading indicator that hyperscaler spending is about to contract, repricing both indexes simultaneously.
