Asia's AI chip stocks plunge in global sell-off

Asian tech stocks plunged Friday as the AI trade rout intensified, with South Korea's Kospi dropping 9% and Japan's Nikkei 225 falling 7%, triggering trading halts and steep losses for major chipmakers. Samsung Electronics fell 11%, SK Hynix lost nearly 14%, and TSMC dropped 10%, while Kioxia, Advantest, and SoftBank each declined 15-16%. The sell-off followed a Wall Street correction after Democrats swept US midterm elections, raising fears of tighter AI regulations. Analysts say investors are reassessing heavy positioning in AI beneficiaries and demanding proof that massive spending will yield returns, though the correction reflects repriced expectations rather than collapsing demand, potentially ending equal rewards for all AI-linked companies.