Global Market: South Korea’s Kospi Plunges over 7% as Chip Stocks Tumble on CXMT Concerns
Semiconductor shares drove the rout as investors questioned AI demand and Chinese competition, while program trading was briefly suspended after futures fell 5%.
- On Tuesday, South Korea's Kospi stock market plunged more than 7% intraday to its lowest level since July 31, extending a dramatic reversal for what was once the world's hottest AI-fueled stock market.
- Chinese memory-chip maker CXMT plans to introduce a new server-memory product by year-end, a development Chris Weston, head of research at Pepperstone, said is "challenging established assumptions around market share, pricing power and the durability of margins."
- AI chip heavyweights Samsung Electronics and Hynix led the losses, falling 9% and 10% respectively, while weakness spread across Asia as Japan's Nikkei and Taiwan's Taiex both fell around 3%.
- Broadcom CEO Hock Tan warned Monday that capital, rather than chips or electricity, could become the biggest constraint on the AI industry's growth, adding to investor concerns over pricing power.
- While CXMT has yet to demonstrate it can manufacture this technology at scale, investors are looking beyond AI demand alone to assess how the industry's massive infrastructure buildout will be financed.
129 Articles
129 Articles
The South Korean Stock Exchange suffered a setback of 7%, while Wall Street shows falls above 1% in the premarket.
Seoul shares crash over 7% on chip rout amid AI, inflation woes
SEOUL - South Korean stocks plunged more than 7 percent Thursday as major chipmakers extended losses amid growing concerns over the sustainability of artificial intelligence (AI)-related investments and rate hikes by the Federal Reserve. The Korean won weakened against the U.S. dollar.
Several stock markets in Asia are falling sharply in Thursday trading. In South Korea, the Kospi is down over 7 percent at lunchtime.
The Toronto Star
South Korea’s benchmark Kospi index sinks more than 7% as tech sell-off deepens
HONG KONG (AP) — South Korea’s benchmark Kospi index sank more than 7% on Thursday as a sell-off of technology shares deepened after U.S. stocks fell on hotter-than-expected inflation data.
Coverage Details
Bias Distribution
- 43% of the sources are Center
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D60&w=128&q=75)
Factuality
To view factuality data please Upgrade to Premium
