Business · Markets · 1 hr ago
AI-related shares fall as investors question spending boom
Investors sold shares in companies tied to artificial intelligence, extending a market downturn that has spread across Asia and the United States.
Since OpenAI launched ChatGPT nearly four years ago, companies have invested heavily in chips, data centres and other computing infrastructure.
South Korean chip stocks led the latest losses: Samsung Electronics fell 10% and SK Hynix fell 8% on Monday, while the Kospi dropped more than 6% on Tuesday.
Rising interest rates and volatile bond markets are adding pressure, as investors worry that AI spending may slow and that expected gains may not materialise.
The International Monetary Fund warned that an AI market correction could have global consequences, even as it recognised the technology’s contribution to growth.
Investors are becoming more cautious about funding AI, with Australian data centre operator Firmus shelving a planned $5-billion IPO last week and debt deals facing scrutiny.
Shares of AI-related companies fell sharply as investors questioned the scale and returns of spending on computing infrastructure.
South Korea’s Kospi fell more than 6% on Tuesday, while memory-chip maker Kioxia fell 13% in Tokyo.
Investors are concerned that rising and volatile interest rates could undermine the AI investment boom.
A planned $5-billion initial public offering by Australian data centre operator Firmus was shelved last week after investor interest dried up.
The International Monetary Fund warned that the consequences of an AI market correction could be global.
- Who
- Investors are selling shares in AI-related companies and becoming more cautious about AI-related debt.
- What
- AI-related shares fell as investors questioned spending on computing infrastructure and the potential returns.
- When
- Tuesday, October 13, 2026; the article also reports related market declines on Monday.
- Where
- Asian markets, including South Korea and Japan, as well as US markets.
- Why
- Investors are concerned that rising and volatile interest rates could derail the AI spending boom, and that investment and economic gains may fall short of expectations.
This story does not have two clearly opposing sides.
Cracks began to appear in bets on companies tied to AI infrastructure.
Australian data centre operator Firmus shelved a $5-billion initial public offering after investor interest dried up.
The Philadelphia semiconductor index fell 2.7%, and BlackRock’s research arm downgraded its outlook for US stocks to neutral.
South Korean chip-maker shares extended their losses into a fifth straight day, and the Kospi fell more than 6%.
- Kospi
- Fell more than 6% on Tuesday
- Kioxia
- Fell 13% in Tokyo
- Samsung Electronics
- Fell 10% on Monday
- SK Hynix
- Fell 8% on Monday
- Firmus IPO
- $5 billion; shelved last week
- Kospi from July highs
- Down a quarter
What people are saying
The most important development has been not just bond yields going up, but the volatility for bonds … and that’s starting to work its way out through asset pricing across the board
It’s a very uncomfortable situation on many fronts… Maybe AI capex just comes off the boil a little bit, and maybe a few players are casualties in that.
The consequences of an AI correction could be global
Sources
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