AI Selloff Deepens as Investors Question Sustainability of Chip Boom

The global selloff in semiconductor stocks intensified during Tuesday's Asian trading session, as investors increasingly worry that the artificial intelligence infrastructure boom may be nearing a peak. Markets in South Korea and Taiwan, which are heavily weighted toward chipmakers and AI hardware, saw significant declines following reports of slowing momentum in AI infrastructure deals. Nvidia’s recent massive investments have heightened fears that the massive capital expenditure by tech giants may not yield immediate returns, leading to a rotation out of once-high-flying semiconductor names.

Analysts suggest that while the long-term potential of AI remains intact, the "easy money" phase of the trade is concluding. This skepticism is reflected in the Korea Composite Stock Price Index (KOSPI), which has become a lightning rod for the regional downturn. Investors are now scrutinizing the actual delivery of AI-related earnings rather than trading on speculative future growth. The selloff is not limited to hardware; it is triggering a broader re-evaluation of risk across Asian tech hubs as the market prepares for a more volatile interest rate environment and shifting global demand.