- AI stocks including in South Korea, Taiwan and Japan have faced volatility over doubts about tech firms’ massive spendings on AI infrastructure and if that can generate sustainable returns.
- Chipmaker SK Hynix lost 5.6% after sinking more than 9% on Wednesday, when it also reported a record quarterly operating profit, which ballooned nearly sixfold.
- Samsung Electronics fell 0.7%, even after the South Korean technology giant for the latest quarter, largely in line with estimates.
- The Kospi ended 1.2% lower at 5,593.56, after falling 10.8% on Tuesday and nearly 6% on Wednesday.
- Oil prices gained Wednesday and Asian shares were mostly trading lower as South Korea’s Kospi extended its losses after falling more than 16% over the past two days led by artificial intelligence-related stocks.
Asian stock markets are experiencing significant turmoil, particularly in South Korea, where the Kospi index has plummeted 1.2% following a staggering 16% drop over the past two days.4
This decline is largely attributed to concerns surrounding artificial intelligence investments.
On Tuesday, the Kospi fell 10.8%, followed by a nearly 6% drop on Wednesday, closing at 5,593.56.
Samsung Electronics saw a 0.7% decrease in its stock price, despite reporting quarterly results that were largely in line with market expectations.3
Meanwhile, SK Hynix, a major chipmaker, faced a 5.6% loss after a more than 9% drop the previous day, even as it announced a record quarterly operating profit that surged nearly sixfold.2
The volatility in AI stocks across South Korea, Taiwan, and Japan raises questions about the sustainability of tech firms' massive investments in AI infrastructure.1
Analysts are increasingly skeptical about whether these expenditures will yield sustainable returns, contributing to the current market instability.
“The Kospi's decline follows a 10.8% drop on Tuesday and nearly 6% on Wednesday, reflecting investor concerns over AI-related stocks. Meanwhile, SK Hynix reported a record quarterly operating profit, yet its stock fell 5.6%, highlighting the market's skepticism about sustainable returns from AI investments.”
AP News
