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Asian stocks fall on AI concerns
Asian stocks declined sharply today, Tuesday, led by South Korea and Japan, amid growing concerns over an AI spending bubble, which was followed by a significant wave of selling in semiconductor stocks worldwide. The Korean Kospi index hit its lowest level since April, while the Japanese Nikkei 225 dropped to its lowest since May, with major companies like Samsung and SK Hynix experiencing declines. Reports indicating that NVIDIA's AI-related funding commitments exceeded $750 billion raised questions about the sector's ability to absorb such massive expenditures, despite Chinese technology stocks being supported by a move toward self-sufficiency.
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