AI sell-off deepens as chip stocks slump in market retreat - business live
📰 source: theguardian_business · 💼 business
ai sell-off deepens as chip stocks slump, with asian markets plunging. south korea's kospi dropped over 10%, japan's nikkei fell more than 4%. sk hynix and samsung electronics both fell over 10%, while nvidia dropped 5% in us trading, giving apple back the top spot as the world's biggest listed company.
investors are growing fearful of the huge borrowing among ai companies, with credit default swap prices for oracle, spacex, alphabet, amazon, meta, broadcom and nvidia hitting record highs. a report that china has begun mass production of homegrown duv chipmaking tools also spooked markets, though analyst jing jie yu of morningstar called the sell-off a knee-jerk reaction that's overdone.
elsewhere in the uk, barclays reported a 17% rise in profit to £6.1bn, helped by equity traders and investment bankers. unilever beat expectations with 5.8% second-quarter sales growth but warned of price rises later this year. games workshop shares fell 2.8% after reporting lower licensing revenue and a £13m tariff bill from the us.
why it matters: ai chip stock rout signals growing investor anxiety over ai debt and china's chipmaking progress, risking broader market volatility.
source: theguardian_business
sentiment: -0.60 · impact: 0.80