Investor focus shifted to a notable decline in South Korea’s stock market, where major memory chip manufacturers faced severe pressure. The Kospi index experienced a sharp downturn as investors sold off shares in semiconductor giants SK Hynix and Samsung Electronics, both suffering double-digit losses during the session.
The downturn in chip stocks affected global tech markets, raising concerns over the sustainability of substantial investments being made within the artificial intelligence sector.
Market sentiment has grown more cautious, driven by increasing scrutiny of the financing behind AI expansion.
Reports indicating deeper financial relationships between leading AI firms and their tech partners have raised questions about whether the industry’s growth is fueled by interconnected funding mechanisms rather than by genuine end-user demand.
Additionally, the rapid advancements made by Chinese AI developers have heightened concerns. The rise of lower-cost alternatives has sparked discussions about whether the significant investments in data centers, advanced chips, and AI infrastructure will yield the expected returns.
Attention is also shifting to the US Federal Reserve, which is entering a two-day policy meeting on Tuesday. Although investors widely anticipate that policymakers will keep interest rates steady, uncertainties remain high as markets evaluate the central bank’s perspective on inflation and economic growth.
In the meantime, Apple has further solidified its position among global tech giants. The iPhone manufacturer recently surpassed Nvidia to become the world’s most valuable publicly traded company and has now exceeded the $5 trillion market capitalization milestone.
