28.07.2026 13:30
Concerns over the profitability of massive investments in the AI sector and the rising competition from Chinese chip manufacturers have hit technology stocks hard in global markets. While shares of Samsung and SK Hynix lost over 12% in value, Nvidia also declined by approximately 5%. The sell-off in chip giants led to temporary trading halts in Asian stock exchanges, while a rise in Apple shares lifted the company back to the position of the world's most valuable company.
Concerns about the artificial intelligence sector have hit technology stocks hard in global markets. South Korea's benchmark index, the Kospi, fell more than 10 percent during the day due to heavy selling in chip makers, hitting its lowest level since April. Trading was temporarily halted due to the sharp decline.
Shares of SK Hynix, one of the leading companies in the sector, fell 12.7 percent, while Samsung Electronics shares lost 12 percent. The selling wave also spread to stock markets in Japan, Taiwan, China, and Hong Kong.
CHINESE COMPETITION AND COST CONCERNS TRIGGER SELLING
Analysts say the selling is driven by concerns that the multi-billion dollar budgets allocated to AI investments could weigh on profitability. Additionally, the rapid rise of Chinese AI and chip makers has increased investors' risk perception.
In particular, Chinese chip maker CXMT's shares surged 466 percent on the first trading day after its IPO, raising $8.6 billion, strengthening expectations of even fiercer competition in the sector.
APPLE BACK ON TOP
In the US, AI-focused technology stocks also came under selling pressure. Nvidia shares fell about 5 percent, dropping the company's market value to $4.83 trillion.
During the same period, Apple shares rose 1.17 percent, bringing the company's market value to approximately $4.94 trillion. Thus, Apple overtook Nvidia to reclaim the title of the world's most valuable company.
Market experts believe that Apple's more cautious investment strategy compared to its rivals, and its controlled investment in its AI platform Apple Intelligence, has been viewed positively by investors.
EYES ON APPLE'S EARNINGS
After the volatility in tech stocks, investors' attention has turned to Apple's upcoming financial results. The company's balance sheet and management's messages regarding its AI strategy are expected to be decisive for the direction of the technology sector.