South Korea’s stock market plunges 6% as AI concerns trigger a sell-off in chipmaker stocks

Glonghui July 2 — Meta Platform Inc. plans to sell computing power, sparking investor concerns about AI overcapacity and leading to a sell-off in chip maker stocks. This trend may intensify investor worries about the sustainability of the rally in chip stocks. Previously, the global boom in artificial intelligence development fueled a surge in chip stocks. Market heavyweights in Korea sit at the core of the supply chain and have so far benefited from sustained demand for advanced hardware. However, the recent sharp fluctuations in the Korean stock market highlight how quickly market sentiment can shift once doubts arise about the sustainability of this boom.