- AI stock sell-off intensified in South Korea, driving the Kospi index to a three-month low.
- SK Hynix and Samsung Electronics fell over 10% amid rising concerns over AI companies' borrowing for datacentre expansion.
- Analysts attribute the sell-off to worries over AI investment spending and competition from cheaper Chinese chip-making tools.
- China's mass production of domestic DUV chip-making tools and CXMT's 466% IPO surge highlight China's push for an independent AI supply chain.
- Investors are jittery about 'circular funding' in AI, where companies finance each other, exemplified by Nvidia's potential $250bn datacentre project with OpenAI.
- Nvidia shares fell 5% and its CDS spiked, signaling market uncertainty about the timing of buying the dip.