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Financial Times
AI stock sell-off deepens as investors dump chipmakers
An intensified sell-off in AI stocks has resulted in significant declines for major chipmakers, particularly SK Hynix and Samsung Electronics. After SK Hynix’s shares dropped sharply, the South Korean Kospi index was temporarily halted as it tumbled over 10%. This sell-off follows surging valuations and presents a reaction to fears over Big Tech's spending durability on AI infrastructure. These events have instigated corrections in broader stock markets throughout Asia, signaling deeper investor apprehensions about future growth in the semiconductor sector and its pricing dynamics as firms announce aggressive expansion plans amid expected oversupply.
MonitorConfidence: HighShort term horizon
Published 28 Jul 2026, 04:40 UTC4 min read
Visit original article ↗Lead image — Financial Times
Summary
TL;DR
- South Korea's Kospi index suspended after over 10% drop.
- SK Hynix shares fell up to 10%, while Samsung dropped over 12%.
- AI stock sell-off driven by rising interest rates and market corrections.
- Kioxia saw a 50% decline in stock over the past month.
- Long-term demand from Big Tech remains strong despite short-term jitters.
Interesting facts
- The Kospi index has fallen approximately 25% over the last month.
- Despite the recent downturn, SK Hynix is expected to report record earnings.
- Investors are increasingly viewing SK Hynix as a compelling buy due to attractive valuations.