Chip firms fall in US and Asia as AI jitters rattle investors

The stock market experienced a significant downturn, particularly affecting major chip firms in both the US and Asia, as a sell-off in artificial intelligence-related stocks intensified.

South Korea's benchmark Kospi index faced trading halts due to panic selling, ultimately sliding by approximately 10%. The decline was spearheaded by technology powerhouses Samsung Electronics and SK Hynix, which both saw their shares drop by over 10%.

This market turbulence follows a notable drop in AI chip giant Nvidia's shares, which fell 5% in New York. This decrease led Nvidia to relinquish its title as the world's most valuable listed company to Apple.

Japan's Nikkei 225, also heavily weighted with tech companies, mirrored the trend, falling nearly 4.5%. The volatility comes as some analysts question the long-term profitability of AI technologies, given the massive investments being made by governments and corporations worldwide.