South Korea's benchmark Kospi index fell sharply as mounting concerns over competition and the view that AI-related shares have risen too far intensified, dragging down major chipmakers.
Samsung Electronics and SK Hynix extended their declines, with both stocks dropping more than 5% on Tuesday and heading toward a fifth consecutive session of losses. U.S. chipmaker shares also fell overnight, with Micron Technology sliding 3.9%.
The Kospi benchmark index also dropped more than 5%. At 9:47 a.m. local time, after Kospi 200 index futures fell more than 5%, the Korea Exchange triggered its so-called sidecar mechanism, halting program selling on the Kospi for five minutes.
Meanwhile, comments from Broadcom's CEO describing AI stock investment as having a gambling-like nature added to market worries.
"Valuations and share prices of South Korean chipmakers appear to be weighed down by uncertainty over whether the boom cycle can last through 2028 and beyond," said Ha SeokKeun, chief investment officer at Eugene Asset Management.
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Korean Kospi Index Slumps as Chip Stocks Weigh Heavily
Deep News10-13
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