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AI sell-off drags South Korea stocks as chip names plunge

SK Hynix and Samsung Electronics both fell more than 10%, pushing the Kospi down 11.5% to a three-month low.

Reported · Written up by our desk · Asia

The sell-off in AI-related stocks intensified in South Korea, with investors continuing to unwind positions in semiconductor shares and sending the Kospi index to its lowest level in three months.

South Korean memory and chipmakers SK Hynix and Samsung Electronics each fell by more than 10%, dragging the Kospi down 11.5% to its lowest point since mid-April, according to the Guardian Business.

Analysts cited renewed concerns about AI investment spending and competition from cheaper Chinese chipmakers. The outlet pointed to a report that China has begun mass production of homegrown deep ultraviolet chip-making tools, and said the move raised worries about whether China’s equipment progress could threaten global leaders.

The sell-off also reflected anxiety around how AI firms finance data center buildouts, including concerns about “circular funding.” The Guardian Business added that it comes after the Wall Street Journal reported Nvidia was in discussions with OpenAI about providing $250 billion for a major Ohio datacenter project, a development that was linked to Nvidia shares closing 5% lower on Monday and to higher credit default swap costs for insuring the company’s debt against default.

Latest closeKospi 6,690.62 ▼5.7%

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