The world's hottest AI stock market has gone cold
South Korea's KOSPI has shifted from the world's best-performing major stock benchmark in early 2026 to one of the worst, falling approximately 24% in the second half of the year. Global AI and chip stocks have lost more than $1 trillion in market value, with the Philadelphia Semiconductor Index hitting its longest losing streak in 11 years. Investors are increasingly skeptical about AI returns, while specific pressures on Seoul shares include inflation and Middle East instability.
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- ✓ The KOSPI fell about 24% in the second half of 2026.
- ✓ Global AI and chip stocks lost over $1 trillion in market value.
- ✓ The Philadelphia Semiconductor Index experienced its longest losing streak in 11 years.
- ✓ The KOSPI was the best-performing major stock benchmark in the first half of 2026.
What changed
The KOSPI plummeted 3.65% and fell to the 6,300 range despite record earnings from Samsung.
Live updates
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South Korean AI Stocks Plummet as Global Tech Market Cools
South Korea's KOSPI has shifted from the world's best-performing major stock benchmark in early 2026 to one of the worst, falling approximately 24% in the second half of the year. Global AI and chip stocks have lost more than $1 trillion in market value, with the Philadelphia Semiconductor Index hitting its longest losing streak in 11 years. Investors are increasingly skeptical about AI returns, while specific pressures on Seoul shares include inflation and Middle East instability.
Why it matters
The AI boom drove massive valuations for chipmakers and technology firms throughout 2026. A recent study indicates 95 per cent of generative AI pilots failed to provide a return on investment. This suggests a potential bubble burst similar to the dot-com crash.
What is confirmed
- The KOSPI fell about 24% in the second half of 2026.
- Global AI and chip stocks lost over $1 trillion in market value.
- The Philadelphia Semiconductor Index experienced its longest losing streak in 11 years.
- The KOSPI was the best-performing major stock benchmark in the first half of 2026.
Still unconfirmed
- 95 per cent of generative AI pilots failed to deliver return on investment.
What to watch next
- Federal Reserve decisions on interest rate hikes following inflation reports
- Further KOSPI performance relative to Samsung earnings reports
- Data on generative AI pilot ROI across other major markets
confidence 90%Sources used for this update (21)
- www.bbc.com — World | Latest News & Updates | BBC News
- apnews.com — World News: Top & Breaking World News Today | AP News
- www.cnn.com — World news - breaking news, video, headlines and opinion | CNN
- www.wionews.com — AI APOCALYPSE is coming: The bubble of overvalued stocks, underperforming apps will burst soon, but who will survive?
- www.breitbart.com — Economy - Latest News
- en.wikipedia.org — World - Wikipedia
- Bloomberg.com — Once-Hot AI Trade Leaves Korean Stocks Struggling for Buyers
- Business Insider — The World's Hottest AI Stock Market Has Gone Cold
- The Korea Herald — Seoul shares open lower on inflation, Mideast woes
- Businesskorea — [Closing Market] KOSPI Tumbles to 6,300 Range amid Foreigners' Selling Bomb
- The Korea Times — KOSPI plunges 3.65% despite Samsung's record earnings
- en.sedaily.com — Korea's Once-Hottest AI Stock Market Turns Coldest
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