Asian shares sink, with Tokyo down nearly 5% as slumping AI stocks drag world markets lower

Asian shares skidded Friday, with Tokyo's Nikkei 225 down 5% as heavy selling of computer chipmakers and other AI-related shares dragged markets lower. South Korean markets were closed, but Taiwan's shares fell more than 5%. The selloff follows weeks of pressure on AI stocks amid concerns that high prices may not be sustainable if AI fails to deliver expected profits and productivity.

Asian shares sink, with Tokyo down nearly 5% as slumping AI stocks drag world markets lower Asian shares have skidded, with Tokyo’s Nikkei 225 down 5% as heavy selling of computer chipmakers and other AI-related shares drag markets lower - Bookmark Asian /topic/asian shares skidded Friday, with Tokyo’s Nikkei 225 down 5% as heavy selling of computer chipmakers and other AI-related shares dragged markets lower. South Korean /topic/south-korean markets were closed Friday, but shares in Taiwan /topic/taiwan also fell more than 5%. Stocks related to artificial intelligence have been under pressure for weeks because of worries that their prices have shot too high and that voracious demand for computer memory and processors may not be sustainable if AI ends up not producing as much profit and productivity as promised. On Thursday, the S&P 500 fell 0.5% even though more stocks rose within the index than fell. The Dow Jones Industrial Average /topic/dow-jones-industrial-average dipped 0.2%, and the Nasdaq composite lost 1.5%. Wall Street mostly rose after more U.S. companies reported better earnings for the latest quarter than analysts expected.