South Korea's KOSPI plunges 7% after Broadcom CEO AI warning
South Korea's KOSPI index just dropped 7% in one day, mostly because investors are suddenly nervous about semiconductor stocks.
It all intensified after Broadcom's CEO compared betting on AI to "set very extreme expectations only to find out that it's almost like they are in a casino," which spooked the market.
Big names like Samsung Electronics and SK Hynix both lost over 8% of their value, showing just how shaky things feel right now.
CXMT memory progress pressures Korean chipmakers
The selloff got worse after news broke that Chinese competitor CXMT made progress on a new memory architecture that Samsung and SK Hynix are also working on, putting extra pressure on Korean companies.
Kospi program trading was even paused for a bit, and foreign investors have pulled out more than $6.3 billion worth of Kospi shares on a net basis in October.
Even though Samsung posted record profits, everyone's waiting to see what industry giants like ASML and TSMC report next, hoping for some clue about where things go from here.