Shares in major chip firms have fallen sharply in the US and Asia as the sell-off in artificial intelligence-related stocks deepened. In South Korea, the trading of the country’s most valuable listed company, which is valued even more than Apple, has experienced significant turmoil. The tech-heavy Kospi index, which saw a rise of more than double its value from the beginning of the year to mid-June, has now lost around a third of its worth. This dramatic slide has led to the Kospi being halted eight times this year under a stock market mechanism known as a circuit breaker, designed to calm any panic selling among investors.
You see, in recent months, stock market trading has been particularly volatile in South Korea, drawing in a large number of retail investors. It’s like a rollercoaster ride for them. On Monday, US-listed shares in SK Hynix, a major player in the chip industry, dropped by 7.5%, plummeting well below the $149 offer price when it made a record-breaking debut on Nasdaq just a few weeks ago, on July 9th. And if you think that’s bad, Japan’s most valuable company after the iPhone maker has seen a 25% rise this year, making the situation even more perplexing for investors.
As governments and companies worldwide spend hundreds of billions of dollars to develop AI capabilities, analysts are starting to raise an eyebrow. They’re questioning whether this technology can generate enough profit to recover such massive investments. It’s a bold move, but is it really worth the risk?
The sentiment in the market is shaky, with many investors feeling the heat. They’re left wondering whether to hold on or jump ship as they grapple with the uncertainty surrounding AI’s profitability. What’s next for the chip industry? Will the stocks bounce back, or are we in for a long and bumpy road ahead?
Kaynak: Orijinal Haber