Loading ...Apparently there’s a AI bubble after the hype and the question of AI making any money is starting to disappoint investors expecting rising returns. That was faster than the dot com bubble.
It’s happening here to a extent too and has affected rare earths miners like MP. They’re still needed for tech and manufacturing but AI investors is the sector selling Ai related stocks.
South Korea’s stock market (the KOSPI) has faced massive volatility and a severe correction following a massive artificial intelligence-driven boom. The slump is driven by a fading AI hype cycle, disappointing tech earnings, and a violent unwinding of heavy retail leverage tied to major chipmakers like Samsung and SK Hynix. [1, 2, 3, 4, 5, 6]
Key Drivers of the Downturn
- The AI Bubble Correction: After massive gains fueled by high-bandwidth memory chips for AI infrastructure, investors began demanding immediate, sustainable returns on heavy tech spending, punishing companies even for solid earnings that merely met instead of beating stratospheric expectations. [1]
- Concentrated Market Risk: Market heavyweights Samsung and SK Hynix accounted for roughly half of the primary index’s value at its peak, making the entire South Korean market acutely vulnerable when sentiment toward semiconductor stocks turned negative