Asian Stocks Slide as AI Concerns Send Kospi Down 7.4%

Asian stocks fell sharply Tuesday as investors reassessed artificial-intelligence valuations and semiconductor competition, with South Korea’s benchmark Kospi dropping 7.4% to 5,914.35.

Samsung Electronics fell 7.7% and SK Hynix declined 8.8% as memory-chip shares led the retreat. MSCI’s broadest Asia-Pacific index excluding Japan fell more than 2% to its lowest level since late July.

Concerns about ChangXin Memory Technologies’ progress on a higher-density memory-chip design raised pressure on South Korea’s major chipmakers. Investors were also weighing higher oil prices, geopolitical risks and elevated interest-rate expectations, which have made expensive growth stocks more vulnerable.

The decline extended across major regional markets. South Korea’s Kospi was down about 6% in early trading, Japan’s Nikkei fell 2.6% and Taiwan stocks dropped 2% before the broader moves were recorded.

The sell-off puts renewed focus on whether heavy AI spending can continue to support current technology valuations as competition and macroeconomic risks increase.