South Korea's KOSPI and Taiwan's TAIEX plunge on AI doubts
Business
South Korea's KOSPI and Taiwan's TAIEX stock markets just took a big hit, both dropping sharply after a global tech selloff.
The KOSPI slid more than 40% from its June high, while the TAIEX lost over 17% in the same stretch.
It all comes down to investors getting nervous about whether artificial intelligence (AI) hype can really deliver, and competition from Chinese chipmakers isn't helping.
Investors cautious after $2 trillion loss
Together, these drops wiped out over $2 trillion in market value.
A lot of the worry is about massive AI spending plans (like NVIDIA's more than $750 billion push) and complicated funding loops between AI companies and their suppliers.
If demand for AI doesn't hold up, those risks could snowball fast, so investors are playing it extra cautious right now.