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In focus
- A roller coaster couple of days for Asian AI stocks
- A look into our archives for some AI bubble predictions
- OpenAI moves closer to an IPO
Hello reader,
Pretty soon, the household names of the AI era are going to discover just how fickle the markets can be, as the likes of OpenAI, Anthropic, and SpaceX hurtle toward IPOs. Over the last couple of days, Asian AI-linked stocks got a taste of the market’s whims.
On Monday, semiconductor manufacturers like Samsung and SK Hynix saw their stock prices hit hard, with investors spooked by fears of the AI rally overheating. The slump got so bad that trading was temporarily halted in South Korea, as today’s featured story outlines.
However, what goes down often comes back up, at least on public markets. Indices in South Korea, Japan, and Taiwan all bounced back, with investors “buying the dip” of those same AI-linked firms they fled from a day before.
So what does any of this mean? With growing questions about when (or whether) AI will generate a real return on investment for all those billions spent, this looks like a sign that markets are starting to interrogate the sector more seriously.
Are we in the early stages of a bubble bursting? Maybe, maybe not. Either way, it’s a good moment to revisit a piece my colleague Scott wrote at the end of last year, asking whether 2026 is the year the AI party ends.
For now, the party isn’t over. But a few folks might be wondering if they’ve stayed a little too long.
Peter Cowan, engagement editor
Top Story
Asian tech stocks slide as investors question AI valuations
Screens displaying Japanese company stock prices / Photo credit: Ned Snowman / Shutterstock
South Korea’s Kospi was down 8.3% when the market closed on Monday, marking its steepest daily decline since March 4. Just a day later, though, it surged 8.2%, essentially wiping out the losses.
Volatility may be the new normal for markets everywhere, particularly as AI becomes more embedded in daily life and public firms.
From our archives
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