AI Bubble Bursts

Global stock markets witnessed heavy selling on Tuesday. South Korea’s benchmark KOSPI index suffered a massive 10% crash, triggering a 20-minute trading halt. Major companies like Samsung Electronics (down 10%) and SK Hynix (down over 12%) led the decline.

The sharp fall came after months of record highs driven by the AI boom. Experts attribute the crash to profit booking and concerns over high valuations in AI and semiconductor stocks. The KOSPI had surged nearly 95% this year before the sharp correction.

Analysts warn that the market had become dangerously overextended, with high retail participation using margin and leveraged products. This crash has sparked fears that the much-hyped AI bubble may be bursting.