Some tech shares are plunging - what does that mean for the AI revolution?
Sharp falls in the value of chip makers have stoked investor concerns that the euphoria around AI related companies is fading.
By BBC News
Tech shares have fallen sharply as investors question how much more AI-linked companies can keep spending and whether that growth can continue. The sell-off has been especially severe in chipmakers and memory stocks, which have been among the biggest winners from the AI boom.
According to the report, the weakness was driven by concerns about the sustainability of AI investment and by competition from China in chipmaking. Reuters said South Korean chip stocks, including Samsung Electronics and SK Hynix, slumped on Tuesday, while other outlets reported heavy falls across major semiconductor names in the US and Asia.
The broader market impact was also significant. NBC News said the sell-off briefly pushed the Nasdaq-100 into correction territory, meaning a fall of 10% or more from its recent record high. The New York Times reported that South Korea’s Kospi index fell more than 10% at one point, triggering a temporary trading halt.
Among the companies mentioned in the coverage, Micron, AMD, Intel, SanDisk, Western Digital and Seagate all saw notable declines in US trading, while Samsung Electronics and SK Hynix also fell sharply in Asia. The immediate question for investors is whether the latest drop marks a short pause in the AI trade or the start of a longer reassessment of valuations.