- Shares in major chip firms have fallen sharply in the US and Asia as a sell-off in artificial intelligence-related stocks deepened.
- The slump was led by technology firms, with Samsung Electronics and SK Hynix both falling by more than 10%.
- Nvidia fell by 5% in New York on Monday, meaning it lost its position as the world's most valuable listed company to Apple.
- The tech-heavy Kospi has been halted eight times so far this year under a stock market mechanism known as a circuit breaker.
- On Monday, US-listed shares in SK Hynix fell by 7.5% to well below the $149 offer price when it made a on 9 July.
- The decline allowed Apple to overtake Nvidia as the world's most valuable company after the iPhone maker rose by about 25% this year.
Asian tech stocks faced a significant downturn as major players like Samsung Electronics and SK Hynix saw their shares drop over 10%, amid a broader sell-off in artificial intelligence-related stocks.125
Trading on South Korea's benchmark Kospi index was temporarily halted after it slid by 8%, marking the eighth time this year that the index has been paused due to panic selling.4
The decline in tech stocks was exacerbated by a 5% drop in Nvidia shares on Monday, which resulted in the company losing its title as the world's most valuable listed company to Apple. This shift in market value comes as Apple’s stock has risen approximately 25% this year.36
Japan's Nikkei 225, heavily influenced by technology firms, also fell nearly 4.5% on Tuesday morning, reflecting the widespread impact of the sell-off.
The tech-heavy Kospi has been halted eight times this year under a stock market mechanism known as a circuit breaker, designed to calm panic selling.
As the market continues to react to these fluctuations, investors are closely monitoring the performance of AI-related stocks and their implications for the tech sector's future.
“The tech-heavy Kospi has been halted eight times this year due to panic selling, reflecting ongoing market volatility. Meanwhile, Nvidia's 5% drop allowed Apple to reclaim its position as the world's most valuable company, having risen about 25% this year.”
BBC
