Rising concerns over oil supply trigger sell-off in AI trading

Golden Ten Data reported on March 4 that this year, as the frenzy for artificial intelligence trading has been replaced by concerns over oil prices driving inflation shocks, overseas investors are withdrawing from Asia’s hottest markets. In the Korean stock market, overseas investors sold about $3.1 billions worth of stocks this week, after a record net sale of $13.7 billions last month. In the Taiwan stock market, foreign investors sold $3.6 billions worth of stocks, making it likely to see the largest weekly capital outflow since the end of December last year. Korean memory chip giants Samsung Electronics and SK Hynix both fell nearly 20% this week, while TSMC has also dropped more than 5% this week. Matthew Haupt, portfolio manager at Sydney’s Wilson Asset Management, said: “As the situation in Iran appears to be deteriorating, crowded long positions in artificial intelligence and other sectors are being heavily sold off as investors reduce risk exposure across markets.” He added that the market is still questioning whether the industry’s massive capital expenditure plans will ultimately generate enough profit.