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

BANGKOK (AP) — 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 Friday, but shares in 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 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.