Updated
Updated · Bloomberg · Jun 26
AI Stocks Plunge as Chip Demand Fears Drive Kospi Down 10% and Nasdaq 100 Off 3.3%
Updated
Updated · Bloomberg · Jun 26

AI Stocks Plunge as Chip Demand Fears Drive Kospi Down 10% and Nasdaq 100 Off 3.3%

3 articles · Updated · Bloomberg · Jun 26

Summary

  • South Korea’s Kospi tumbled 10% and the Nasdaq 100 dropped 3.3% as a fresh selloff in AI-linked shares spread from Seoul to New York.
  • Chip-demand worries triggered Tuesday’s slide, compounding extreme investor positioning and rate fears that had already shaken the sector two weeks earlier.
  • The Kospi was hit especially hard because it houses major chipmakers SK Hynix and Samsung Electronics, while the Nasdaq 100 logged its second-worst session of the year.
  • The rout suggests the AI trade remains intact but is no longer lifting all related stocks in a straight line, pointing to a more volatile phase for the sector.

Insights

AI's demand is causing 'memflation.' Will the soaring price of memory chips make all other electronics unaffordable?
As AI soars, does its total reliance on Chinese circuit boards create an unavoidable security crisis for America?
With AI's thirst for power outstripping grids, is the tech boom about to hit a literal energy wall?