A doubt originating from South Korean electronic chips is now traversing the global finance landscape. After a drop of 10.8% on Tuesday followed by nearly 6% on Wednesday, the Kospi remained under pressure on Thursday, July 30. On Wall Street, the Dow Jones lost 1,153 points, the Nasdaq declined, and Nvidia weighed heavily on the session. At the same time, oil remains extremely volatile. This double shock raises a question that investors can no longer avoid: can the economic promises of artificial intelligence catch up with the valuations and colossal expenditures already incurred?

The movement is not merely a bad day on the stock market. According to the Associated Press, the South Korean index lost over 16% in two sessions before remaining agitated on Thursday. South Korea is home to two key players in advanced memory, Samsung Electronics and SK Hynix. When these groups falter, the entire global AI supply chain, from data centers to servers, is called into question.

Seoul Becomes the Epicenter of Global Doubt

The severity of the South Korean correction is tied to the market structure. Samsung Electronics and SK Hynix together represent more than half of the Kospi’s market capitalization, according to Reuters. They have been propelled by the demand for high-bandwidth memory, essential for AI accelerators. However, this concentration works both ways: it amplifies the rise when enthusiasm prevails and accelerates the fall when expectations are disappointed.

Yet, SK Hynix announced record quarterly revenues and profits. The problem lies elsewhere: spectacular growth is no longer sufficient when analysts expect even more. The Associated Press highlights that the 257% increase in revenue did not meet expectations. This is the crux of the current dizziness: the market does not necessarily penalize the absence of growth, but the gap between an already exceptional reality and even more extreme anticipations.

Wall Street Receives the Shockwave

On Wednesday, the S&P 500 fell by 1.5%, the Dow Jones by 2.2%, and the Nasdaq by 1.7%. The latter was 9.8% below its record from the previous month. Nvidia dropped 3.6%, while KLA Corporation, a supplier of equipment and services for semiconductors, plummeted by 10.8% despite better-than-expected results.

These figures show that the market is beginning to distinguish between two ideas that have long been conflated. AI can transform the global economy while also having produced stock prices that are too high in the short term. A technology can be revolutionary without guaranteeing that every investment made at any price will be profitable. The current pullback is thus as much a crisis of expectations as it is a judgment on the technology itself.

The Data Center Bill Becomes Impossible to Hide

Major tech companies are spending hundreds of billions of dollars to buy chips, build data centers, and secure electricity. These investments rest on a promise: generative AI must improve productivity, create new services, and generate revenues capable of covering this infrastructure.

However, the markets now want to see proof. Subscriptions, professional tools, and automation are progressing, but the timeline for profits remains uncertain. Chinese competition in memory adds additional pressure. Reuters has also noted concerns regarding infrastructure financing and the arrival of new competitors, two factors that could reduce margins even if demand continues to rise.

Oil and Rates: The Second Squeeze That Changes Everything

The tech correction comes at the worst possible time. Brent surged by 7.3% on Wednesday to $88.09 per barrel, following the resumption of fighting involving the United States and Iran, before retreating on Thursday. Since the beginning of the month, it has fluctuated between $72 and $102. Such volatility complicates decisions for businesses, transporters, and central banks.

Higher oil prices can reignite inflation. Persistent inflation keeps interest rates high. And high rates reduce the present value of future profits, which particularly impacts the most expensive tech stocks. The yield on the ten-year U.S. Treasury bond reached 4.68%, up from 3.97% before the war with Iran, according to the Associated Press. Thus, AI stocks are simultaneously facing doubts about their profits and the rising cost of capital.

Why France and Europe Are Directly Concerned

The shock will not remain confined between Seoul and New York. Europe relies on Asian and American components for its data centers, automotive industry, defense, and digital services. A prolonged correction could make investors more selective, slow down certain projects, and increase the cost of financing for young companies.

In France, groups exposed to semiconductors, electrical equipment, cloud infrastructures, and data centers are particularly under scrutiny. The CAC 40 is less concentrated in technology than the Nasdaq or the Kospi, which may offer relative protection. However, the rise in oil directly affects transport, chemicals, tourism, and purchasing power. If the energy shock sustains inflation, the European Central Bank will also have less freedom to lower its rates.

What to Watch Now

Three signals will be decisive. The first is the ability of chip manufacturers to maintain their margins despite competition and investments. The second is the speed at which cloud giants convert their AI spending into measurable revenues. The third is the price of energy, as a new oil shock could reinforce both inflation and market caution.

It would be premature to declare the end of the AI boom. The needs for computing, memory, and infrastructure remain real. But the market has just sent a powerful warning: growth is no longer sufficient; it must exceed almost impossible expectations. After months of fear of missing out on the rise, the fear of overpaying is reclaiming its place.

The great dizziness of July 2026 thus reveals a new phase. Investors are no longer just asking who has the best technology; they want to know who finances it, who makes it profitable, and at what pace. From Seoul to Paris, this demand could reshape the global competition in artificial intelligence far beyond a mere stock market correction.

Sources

• Associated Press — Asian markets and prolonged Kospi decline, July 30, 2026.
• Associated Press — Wall Street decline, oil, rates, and AI stocks, July 29, 2026.
• Reuters via Investing.com — Kospi collapse and fears over AI spending, July 28, 2026.
• Yonhap — historic closure of the South Korean market, July 28, 2026.