Global Chip Selloff: A $500 Billion Value Erase Amidst AI Boom Concerns
The global market witnessed a dramatic downturn in semiconductor stocks on November 5, 2025, as fears of overvaluation gripped the artificial intelligence (AI) sector's leading players. The Kospi, South Korea's equity benchmark, plummeted by 6.2%, with tech giants Samsung Electronics Co. and SK Hynix Inc. bearing the brunt of the decline. In Japan, Advantest Corp., a key equipment provider, saw a 10% drop, impacting the Nikkei 225 index. Taiwan Semiconductor Manufacturing Co., Asia's largest chipmaker, also suffered a 3.3% fall. These companies are all integral suppliers to Nvidia Corp., a prominent player in the AI chip space.
This sudden selloff highlights a critical juncture in the tech industry, where the AI boom's success may be overshadowed by concerns about unsustainable valuations. As investors grapple with these uncertainties, the market's reaction serves as a stark reminder of the delicate balance between innovation and financial stability.
