Asian stock markets experienced a broad selloff today, driven by growing investor anxiety over the sustainability of the AI sector and fears of increased competition from Chinese chip manufacturers.
The Nikkei 225 fell by over 3% as semiconductor stocks led the decline, reflecting a global trend where investors are re-evaluating the high valuations of major tech companies.
Market analysts attribute the volatility to concerns over circular funding models in the chip industry, which have prompted a cautious outlook for tech-heavy portfolios in the coming quarter.