Artificial intelligence-related stocks like E2E Networks, ESDS Software, Netweb Technologies were trading up to 6% lower on October 15 due to selloff in global chipmakers.
A global selloff in semiconductor stocks dragged South Korea’s equity benchmark down nearly 8% to push it into a bear market, as investors retreat from the frothiest corners of the AI trade.
Worries over Federal Reserve interest rate hikes and AI funding difficulties came to the fore on Thursday, driving SK Hynix Inc. and its memory peer Samsung Electronics Co. down more than 9% each. The Kospi has fallen about 21% from its September high. Korea’s stock exchange halted trading for 20 minutes earlier as selling deepened.
Japan’s Nikkei 225 dropped nearly 5%, with semiconductor-related shares including Ibiden Co. and Kioxia Holdings Corp. among the worst performers.
Investor angst grew after data showed US consumer prices advanced in September at the fastest clip in five months, spurring bets on more aggressive Fed tightening.