Lates News

Plans to sell computing power by Meta have sparked concerns in the market about an oversupply of artificial intelligence computing power, leading to a sharp decline in the South Korean stock market. The stocks of chip manufacturers have dropped one after another. In early trading on Thursday, the South Korean KOSPI index fell nearly 7%, triggering a temporary trading halt. SK Hynix fell nearly 9% and Samsung fell over 7%. Overnight, their U.S. counterparts Micron Technology (MU.O) and SanDisk (SNDK.O) both closed down more than 10%. These trends may exacerbate investor concerns about the sustainability of the rise in chip stocks, which was previously driven by the robust development of global artificial intelligence infrastructure. South Korea's market giants are at the core of the supply chain and have benefited from sustained strong demand for advanced hardware. However, recent volatility in the South Korean stock market suggests that once doubts arise about the sustainability of this prosperity, market sentiment may quickly change.