As AI-related chip shares fell sharply, a debate broke out over whether it reflects a crisis of market confidence. Economist Paul Krugman interpreted it as 'the end of early AI euphoria.'

Krugman argued that expectations for AI had been priced into shares excessively. He is not denying the technology's potential itself, but diagnosing a correction of the excessive optimism built up over a short span.

AI chips have indeed been the market's darling in recent years. As data-center investment and demand for high-performance computing surged, related shares climbed steeply, with 'bubble' debates recurring in some quarters.

Two readings of the drop face off in the market: one sees a valuation adjustment unrelated to earnings; the other fears the AI investment cycle is showing signs of slowing.

Experts advise distinguishing the long-term trend of innovation from the short-term swings of share prices, since prices can lurch between expectation and reality even as innovation proceeds.

The correction hit the Korean and Taiwanese markets, heavily weighted toward chips, directly. Both the Kospi and Taiwan's weighted index swung sharply on the fall in chip shares.

For Sinophone investors in Korea, too, the volatility of AI and chip-related assets is of interest. Experts advise guarding against crowding into any single theme.