Korea’s KOSPI crashes another 5% as AI rout deepens; AI bellwether down over 40% from peak
Chip heavyweight SK Hynix Inc. headed for its lowest close since April. Data-center infrastructure company Elice Inc. plunged as much as 32% in its trading debut in Seoul. Both AI bellwethers SK Hynix and Samsung have plunged 35% and 22%, respectively.
South Korea's KOSPI index suffered a further 5% decline on Tuesday following an intensifying sell-off in AI-related stocks, reducing its 2026 gains to around 30% from an earlier 116%. The index has fallen over 40% from its June record close of 9,386. Major chipmaker SK Hynix and data-center firm Elice saw their shares plunge 35% and 32% respectively.
The index now trades about 39% below its peak. The sell-off intensified in July, extending into October. The decline comes as investors grow concerned about the credit risks tied to heavy AI spending and stronger-than-expected US inflation data. OpenAI's revenue projections further fuel investor worries, with the company reporting annualized revenue of nearly $50 billion, lower than earlier estimates.
The financial assumptions behind the AI rally are under scrutiny as companies continue to invest heavily, leading to heightened concerns over the scalability of AI investment.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
