Kospi crash, SpaceX fall: Is bull-run in AI-related stocks nearing an end?

The glittering bull run in AI-related stocks, a defining force in global markets, appears to be losing some of its shine, sparking concerns among investors and analysts. Following a notable dip in South Korea's Kospi Index and renewed scrutiny on high-flying private market valuations like SpaceX, market watchers are questioning if the party for AI darlings is nearing an end, shifting from explosive growth to a more cautious outlook. For months, the promise of Artificial Intelligence (AI) has fueled unprecedented gains across technology stocks, with companies like Nvidia becoming bellwethers of this excitement. However, recent market movements, including a significant correction in the Kospi Index, suggest a broader shift in investor sentiment. Experts, including U R Bhat from Alphaniti Fintech, are increasingly vocal about the 'worrisome' valuations, pointing out that while AI foundational impact is undeniable, the prices of many related firms might have surged beyond sustainable levels, leading to an inevitable reassessment of growth prospects in high-growth sectors. Investors should brace for increased volatility as the market distinguishes between companies with genuine, sustainable AI integration and those merely riding the hype wave. The coming weeks will likely see a sharper focus on earnings reports, demonstrable AI product adoption, and clearer paths to profitability for technology stocks. Keep an eye on major tech earnings calls and any forward guidance from central banks, as these will heavily influence whether this is a temporary dip or the beginning of a more prolonged market correction for AI-linked assets.