Investors ditch chip stocks as fears of AI bubble grow

Once again, fears of an AI investment bubble are rattling investors. Earlier, trading on South Korea's stock market had to be halted after a steep sell-off. The latest bout of nerves is being caused by news that chip giant Nvidia is investing three-quarters of a trillion dollars to help fund artificial intelligence infrastructure projects. Sceptics call this 'circular financing', where a supplier invests money in its customers, artificially inflating demand. South Korean shares slumped 10 percent, led by chip maker SK Hynix and tech giant Samsung, which dominate the market there.

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