Prescient warns AI-driven chip rally erodes global equity diversification benefits
SMH•Semiconductor setbacks can ripple across markets
Late-July China chip-equipment progress, and ChangXin Memory’s 466% debut, triggered a synchronized selloff in semiconductors across Korea, Taiwan and the US.
Investment loops between chipmakers, model developers and cloud providers tighten contagion risk; cash flow strain from capex raises downside if adoption lags.
AI-led chip rally tightens cross-border equity links
Prescient analysis flagged weakening global equity diversification as AI-linked stocks drive cross-border risk in chip-heavy markets.
By late July 2026, the 60-day Kospi–Nasdaq 100 correlation rose to about 0.5, the highest since 2021.
Concentration amplified moves: Samsung Electronics and SK Hynix exceeded half the Kospi; the top 10 S&P 500 names neared 37%.
