South Korea's Kospi Index Sinks More Than 9% Amid Heavy Selling of Chipmaking Stocks The recent decline of South Korea's Kospi index by more than 9% on heavy selling of chipmaking stocks should not have come as a surprise to anyone following the sector's rapid rise.
For months, analysts and investors have been warning about the unsustainable boom in artificial intelligence (AI) that has fueled the rally in chipmakers like Samsung Electronics and SK Hynix.
The concerns are multifaceted: AI's voracious appetite for processing power and memory is driving up demand for semiconductors, but this growth is largely driven by a handful of tech giants.