South Korean Stocks Tumble 6% as AI Jitters Hurt Chipmakers

South Korean stocks plunged 6% as doubts over artificial intelligence spending momentum triggered a selloff in chipmakers that had previously driven the market's outperformance. The KOSPI index absorbed the decline as investors questioned whether the AI infrastructure buildout can sustain the pace that lifted tech valuations through recent quarters.

Chipmakers bore the brunt of the selloff, though the source material identifies the sector-wide pressure rather than individual stock moves. The retreat reflects growing global skepticism about AI capital expenditure trajectories after chip stocks rallied on expectations of sustained data center investment. South Korea's equity market had ranked among the world's best performers this year largely on the strength of its semiconductor exposure.

The downturn mirrors broader concerns across Asia-Pacific technology markets as traders reassess earnings visibility for companies dependent on AI-related demand. South Korean chip manufacturers have positioned themselves as critical suppliers in the AI supply chain, making the index particularly vulnerable to sentiment shifts around artificial intelligence infrastructure spending.