AI sell-off grows, chip stocks fall

The sell-off in AI stocks has intensified, leading to a significant decline in South Korea’s stock market as chip stocks like Samsung Electronics and SK Hynix dropped over 10%. Investors are concerned about increased borrowing among AI companies for data center expansion and China's advancing chip-making capabilities, which threaten global market positions. Recent events, including a major Chinese chipmaker’s stock surge and discussions between Nvidia and OpenAI for a large funding project, have further fueled market jitters.

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