The AI trade faced its worst day in months, starting in Asia. On June 23, South Korean chipmakers SK Hynix and Samsung Electronics each fell over 12%, dragging down the Kospi index by roughly 10%, which triggered circuit breakers.
The selloff impacted Nasdaq 100 futures, which dropped about 2.6% in early US trading, alongside a 1.4% fall in S&P 500 futures and a 3.1% loss for the European Stoxx 600 tech index.
Analysts are questioning if AI chip demand can sustain its current growth. The recent AI rally has significantly boosted semiconductor companies, with Nvidia becoming a top-tier firm. However, concerns over profitability due to shifts in production and a more cautious investor mood complicate the outlook.
Bitcoin and other major cryptocurrencies often mirror movements in Nasdaq during risk-off sentiment. A downturn in Nasdaq 100 futures can quickly influence the digital asset market, suggesting investors should remain alert.