Asian Stocks Plunge Over Concerns About AI Shares' Future

Asian stock markets fell sharply today (Tuesday), as concerns over the continued growth of shares in AI-focused companies, rising competition in the chip industry, and escalating conflict in the Middle East weighed on markets. The post "Asian Stocks Plunge Over Concerns About AI Shares' Future" first appeared on Safir Arjan.

Today (Tuesday), Asian stock markets faced a sharp drop; Concerns about the continued growth of shares of companies active in the field of artificial intelligence, increased competition in the chip industry and the escalation of conflicts in the Middle East affected the markets.

According to Ambassador Arjan, investors have benefited from the boom of artificial intelligence in the past four years; A trend that has contributed to the growth of corporate profits and economic development with a significant increase in spending in this area.

However, concerns about the concentration of investments in this sector and whether the returns on these expenditures will be realized in time have weighed on the markets. These developments take place on the eve of the beginning of the financial reporting season of American companies and with the start of reporting by the country's big banks.

MSCI's broad index of Asia-Pacific shares excluding Japan fell 2.4 percent to a two-month low on Tuesday. South Korea's Kospi index, which has a high share of technology companies, fell 6 percent. Japan's "Niki" index also fell by 2.6% and Taiwan's stock fell by 2%.

"Nazdak" futures decreased by 0.77% and futures of European markets decreased by 0.39%, which indicated the negative atmosphere prevailing in the markets.

Kyle Ruda, senior analyst at Capital.com, said that much of the decline in Asian markets was due to the fall in shares of chip companies on Wall Street during overnight trading; A trend that has also spread to Asian markets.

In American trading on Monday, shares of chip companies experienced a sharp drop. The publication of reports about the rapid development of the technology of the Chinese company "Changxin Memory Technologies" (CXMT) also increased the concerns; Because this development could help Chinese companies catch up with their more technologically advanced competitors.