South Korea's KOSPI plunges 9% after AI chip selloff
South Korea's KOSPI index just took a big hit, dropping 9% over two days after investors started selling off AI-focused semiconductor stocks.
Thursday alone saw a 4.5% slide, which is pretty wild considering the market had soared by 76% earlier this year.
The sudden dip has people worried that the hype around AI may have pushed prices way past their actual value.
Samsung, SK Hynix slide amid volatility
Samsung and SK Hynix, two giants making up more than half of the index, both fell up to 2%, showing how shaky things are for AI-linked stocks right now.
Leveraged ETFs tied to these companies made things even bumpier, sending volatility to record highs.
On top of that, US inflation hit its highest point in years and tensions in the Middle East have disrupted energy supplies, adding extra stress for investors everywhere.