Asian markets opened sharply lower on Wednesday, with South Korea’s KOSPI index falling 6% as a deepening rout in chip stocks spread from Wall Street. The sell-off was led by Samsung Electronics and SK Hynix, whose shares each tumbled over 7%.
The declines followed a turbulent session in US markets where technology stocks sank on concerns that the AI boom may be overheating. Analysts pointed to profit-taking and rising uncertainty about the pace of AI-related spending as key triggers for the exodus from semiconductor names.
Samsung Electronics saw its market value shed billions, while SK Hynix — a leading supplier of high-bandwidth memory used in AI accelerators — suffered its steepest single-day drop in months. The moves mirrored a global pattern of investors rotating out of high-growth tech stocks.
Traders are now turning their attention to upcoming US jobs data, which could offer clues on the Federal Reserve’s next policy move. A stronger-than-expected report might fuel further rate hike fears, worsening the sell-off in risk assets like chipmakers.
Some market participants argue the pullback was overdue after a blistering rally in AI-linked equities. "Valuations became stretched," one analyst noted, suggesting the correction may be healthy even if short-term pain persists.