The turbulence in Asia around AI-related companies continues, with sharp declines as a result. The biggest fall has been seen in South Korea, where the Kospi index dropped by a full 11 percent during the trading day. In response to the decline, trading has been automatically paused in the hope of ending the turbulence.
Among the losers are some of the stock market's biggest companies, Samsung and SK Hynix, both of which fell more than 10 percent in late trading.
As for memory chip maker Hynix, today's decline means the stock has now fallen 45 percent since its peak in June.
Tuesday's decline was driven by reports that a state-owned Chinese company has begun manufacturing so-called DUV lithography machines for chip production, fueling concerns that China could become self-sufficient in chip manufacturing and no longer have to rely on foreign players.
Greed has turned to fear when it comes to AI-related semiconductor stocks. Investors now interpret every news story negatively and use it as an excuse to sell, rather than critically analysing the actual fundamental impact, Vey-Sern Ling, at wealth manager Union Bancaire Privée, told Bloomberg.
