Technology sector company shares are fluctuating due to fears that interest in artificial intelligence (AI) may not match reality and that shares in this sector are overvalued. However, following the example of the US Nasdaq exchange on Tuesday, Asian technology sector company shares are rising for the second consecutive day: the Tokyo stock exchange index rose by almost 2%, and the Seoul stock exchange index, which includes many semiconductor sector companies, jumped by 5.4%.
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“(At the beginning of the AI-related company stock) boom, companies were valued simply for announcing larger investment plans,” said Stephen Innes, an analyst at SPI Asset Management. “Larger spending plans can still support chip demand, but they also raise questions about free cash flow, financing needs, and how much future prospects are already priced into valuations.”
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