Are fears around artificial intelligence finally turning into reality? A brutal technology selloff in recent sessions has rattled global markets and shaken investor confidence in what is widely seen as the most compelling investment theme. AI and semiconductor stocks, the undisputed market darlings of 2025 and 2026, have suddenly come under pressure as concerns grow that the rally may have run ahead of fundamentals.
The pain has been especially visible in markets most exposed to the AI supply chain like Korea, whose benchmark Kospi has declined 14% from its recent record high in just 3 sessions. Yet on the other side of the spectrum sits India, a market often criticised for its limited exposure to the semiconductor and AI manufacturing cycle.
