Hundreds of billions of dollars in market value has been wiped from major tech firms in the US and Asia in a stock market rout after the US midterm elections sparked concerns of a slowdown in artificial intelligence development.
Shares in firms across the tech and AI sectors plummeted following Democratic wins after election campaigns run on slowing AI.
The tech-heavy Nasdaq composite index closed down by more than 5.5%, losing an estimated $2.5tn (£1.9tn) in market value, according to Dow Jones data, while other key US stock indexes also saw big losses in their worst days since 2025.
The sell-off comes on top of broader concerns about whether the huge amounts being spent on AI will pay off. In Asia, tech-heavy indexes fell sharply on Friday morning as firms that make the computer chips and other equipment that power AI saw their shares slide.
The Nikkei 225 in Japan was 6% lower in early trading as shares in memory chip maker Kioxia lost over 12.6% and rival Tokyo Electron slipped by 9.5%. South Korean chipmaker SK Hynix fell by more than 11.5%, while Samsung was down by nearly 10%.
The sell-off in Seoul sent the Kospi index plunging more than 8.5%, triggering a so-called circuit breaker, a mechanism that temporarily halts trading to curb panic selling. Taiwan's Taiex dropped by more than 8.3%, with chipmaking giant TSMC falling by nearly 8.5%.
It marks a "continuation of worries" over the level of spending on AI infrastructure, said MarketWatch chips analyst Britney Nguyen.
FULL ARTICLE AT: https://www.bbc.co.uk/news/articles/cmn04705rd8jo