South Korea's Kospi index dropped as much as 7.3% with SK Hynix and Samsung Electronics leading losses, as investors weigh whether artificial-intelligence gains justify current semiconductor valuations.

The Selloff Hits Asia's Chip Heavyweights

Semiconductor stocks fell across Asia today. South Korea's Kospi index—a key barometer for chip-sector and AI-linked investing—dropped as much as 7.3%, with SK Hynix and Samsung Electronics among the largest decliners. The move dragged the broader regional market lower.

The Valuation Question

Behind the numbers is a straightforward tension: whether the artificial-intelligence boom can justify the stock prices chip makers have reached over the past year. Traders have rotated heavily into semiconductor stocks on the expectation that AI demand will drive earnings and revenue growth. The selloff suggests some investors are now questioning whether those gains will materialize at the pace reflected in current valuations.

Trading Conditions and What's Next

The Seoul market was closed Friday for a local holiday. Reduced liquidity can amplify price moves during volatile sessions. Whether this selloff spreads to other Asian exchanges or reaches U.S. and European markets when they reopen remains to be seen.