AI selloff drives South Korea KOSPI and chip stocks lower

A sharp selloff in artificial intelligence-related stocks intensified on Tuesday, July 28, 2026, driving South Korea's stock market to its lowest level in three months and sparking a broader decline across Asian semiconductor shares. The plunge was led by steep losses in major chipmakers, including Samsung Electronics and SK Hynix, which fell more than 10 percent, dragging the benchmark KOSPI index down by approximately 10 percent at one point and triggering a temporary trading halt.

The selloff reflects a confluence of investor concerns that have rapidly cooled sentiment toward the high-flying AI sector. Analysts cited mounting worries over the financing of massive AI infrastructure projects, intensifying competition from Chinese semiconductor firms, and questions about the long-term profitability of AI investments. The downturn followed a report that Nvidia, the leading AI chip designer, is in discussions to provide roughly $250 billion in financial backing for a major data center project by OpenAI. This news sent Nvidia's shares down nearly 5 percent on Monday, causing it to lose its position as the world's most valuable listed company to Apple, and raised questions about...