World stocks hit a one-month low on Tuesday as investors sold off chipmakers globally, driven by concerns over Chinese competition and the funding of the AI boom. The downturn also saw the possibility of an early US interest rate hike adding to market uncertainty.
The sell-off followed growing fears that Chinese companies are gaining an edge in the semiconductor industry, potentially threatening global tech leaders. Investors also worried about the financial sustainability of the AI sector, which has seen massive investments without clear returns.
Market analysts noted that the US Federal Reserve’s potential rate hike this week intensified the pressure on tech stocks, which are typically sensitive to monetary policy changes. The decline came as global markets struggled to balance innovation with economic stability.
The chip sector, a key driver of global tech growth, now faces a challenging environment as geopolitical tensions and financial risks converge. (nst.com.my)
