Shares in major chip companies have plummeted in both the US and Asia, driven by a significant sell-off in stocks related to artificial intelligence. South Korea’s Kospi index experienced a temporary trading halt after dropping 8% and continued to fall, ending around 10% lower. This decline was primarily led by tech giants Samsung Electronics and SK Hynix, both of which saw their shares decrease by over 10%. The downturn followed a 5% drop in Nvidia’s stock in New York, causing it to lose its status as the world’s most valuable company to Apple. The Kospi index, which had surged earlier this year, has now lost about a third of its value amid volatile trading conditions. Meanwhile, Japan’s Nikkei 225 also saw a significant decline. Nvidia’s shares were affected by reports of its potential $250 billion investment in OpenAI for a data-center project. As AI development continues to attract massive investments, some analysts question the profitability of such ventures.
QUESTION: How might the volatility in AI-related stocks impact future investments in technology and innovation?
Chip stocks slide in US and Asia as AI jitters rattle investors
