13.10.202607:02:21UTC+00Japan’s Nikkei Slides on Mounting AI Concerns

The Nikkei 225 Index dropped 1.82% to close at 67,777 on Tuesday, marking its fourth straight session of losses and tracking an overnight, tech-led selloff on Wall Street. The decline reflected mounting skepticism about the AI-driven rally, as investors reassessed capital expenditure plans in the face of rising borrowing costs. Sentiment was further weighed down by intensifying competition from China’s ChangXin Memory Technologies (CXMT), which announced progress on a new chip architecture.

Adding to the unease, Broadcom CEO Hock Tan warned that the AI boom had drawn in investors whose approaches increasingly resemble gambling. Meanwhile, billionaire Ray Dalio characterized AI as a “classic bubble” that may be nearing a breaking point as higher interest rates prompt investors to shift wealth into cash.

Technology and AI-related shares bore the brunt of the selloff. Kioxia Holdings tumbled 13.3%, SoftBank Group slid 8.5%, Tokyo Electron fell 7.2%, Taiyo Yuden declined 4.9%, and Advantest lost 2.9%.