AI rout exposes Wall Street's $270 billion speculation machine

What happened

Bloomberg on June 26 chronicles how the retail-driven AI chip selloff spread globally. New SpaceX leveraged funds saw their debut unravel, KOSPI fell nearly 10%, and Micron dropped 13%.

Context and impact

The analysis exposes how the immense capital poured into AI concentrated in a handful of chip and infrastructure names via leveraged ETFs — and the same mechanism is now unwinding. Combined with the Chinese hedge fund bubble warning and weak Apple/SK Hynix tape, it echoes dot-com style volatility.

Details

• KOSPI -10% tripped circuit breakers
• Micron -13% despite a blowout forecast earlier in the week
• SoftBank dropped more than 5%
• Intel -3%, Sandisk -10%, Arm -4%, Marvell -5%
• Eight chip-stock moves of 5%+ in June alone