Updated
Updated · Business Insider · Jun 26
Kospi Closes Down 5.8% as Asian Tech Rout Hits AI Chip Stocks
Updated
Updated · Business Insider · Jun 26

Kospi Closes Down 5.8% as Asian Tech Rout Hits AI Chip Stocks

3 articles · Updated · Business Insider · Jun 26

Summary

  • South Korea's Kospi finished 5.8% lower on Friday after falling more than 8% intraday and triggering its second circuit breaker of the week, with Samsung Electronics down 5.3% and SK Hynix off 8.4%.
  • Apple's price increases for Macs and iPads, blamed on an unprecedented memory-chip shortage tied to AI data-center demand, pushed investors to question whether chipmakers can sustain margins if consumers resist higher prices.
  • Japan's Nikkei 225 dropped 4.2% as SoftBank sank 13% after a report that OpenAI could delay its IPO until next year; Taiwan's Taiex lost 3.6%, Hong Kong's Hang Seng fell more than 2%, and Alibaba slid another 6%.
  • The selloff reversed Thursday's Micron-led relief rally and underscored how this year's AI-driven gains in South Korea, Japan and Taiwan have left those markets vulnerable to sharp swings.

Insights

Is the Kospi's 6% crash a market correction, or has the trillion-dollar AI chip party finally come to an end?
As China's tech competition grows, is South Korea's deep reliance on chip exports becoming its greatest economic vulnerability?
With public trust in AI declining, how can chip giants justify their colossal investments to a suddenly skeptical world?