Asian markets took a hit amid mounting fears around artificial intelligence. South Korea’s KOSPI and Japan’s Nikkei indices faced particularly steep declines Tuesday.
Tech stocks, especially chipmakers connected to AI development, came under pressure as investors questioned the hefty capital demands and lofty valuations in the sector.
The selloff reflects a ripple effect from earlier falls in U.S. and global markets, signaling a broader reevaluation of AI-driven growth prospects.
Among the worries, the projected $1.25 trillion valuation for AI startup Anthropic now seems less certain, with market pricing indicating cautious investor sentiment.
Changes in investment strategies by giants like Amazon and Google could sway the semiconductor industry and influence Anthropic’s valuation in the coming months.
Market watchers will be keen on updates from the Nasdaq Private Market and announcements of new funding or partnerships that may alter the trajectory for AI-linked stocks.
The recent drop in SK Hynix shares shows the vulnerability of chipmakers within this mood swing.
