Chip firms fall in US and Asia as AI jitters rattle investors
Summary
Shares in major chip companies dropped sharply in the US and Asia due to worries about artificial intelligence (AI) stocks. South Korea’s main stock market index, Kospi, fell so much that trading was paused temporarily, and companies like Samsung and SK Hynix lost over 10% in value.Key Facts
- South Korea’s Kospi index dropped around 10% before trading was paused for 20 minutes.
- Samsung Electronics and SK Hynix shares each fell more than 10% during the sell-off.
- Nvidia’s stock fell by 5% in New York, causing it to lose its spot as the world’s most valuable company to Apple.
- The Kospi index has been halted eight times this year to stop panic selling.
- Kospi had doubled in value from the start of 2024 to mid-June but then lost about one-third of its value.
- SK Hynix shares listed in the US fell 7.5% and are now below their initial offer price from early July.
- Japan’s tech-heavy Nikkei 225 index also dropped nearly 4.5% amid the sell-off.
- Nvidia is reportedly in talks to provide $250 billion for OpenAI for a large AI data center project, but both companies declined to comment.
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