South Korean equities plunged as investors reacted to Meta Platform Inc.'s announcement about selling computing power, triggering worries about oversupply in artificial intelligence infrastructure. The benchmark index fell sharply, with semiconductor stocks bearing the brunt of selling pressure.

Meta's computing power sales strategy raised fresh questions about whether the AI boom has created excess capacity across the tech sector. This concern hit chipmakers particularly hard, as these companies have been among the primary beneficiaries of massive AI investments worldwide.

The selloff reflects growing anxiety about AI spending sustainability and whether current valuations for semiconductor companies accurately reflect future demand. Investors are reassessing growth projections amid signs that major tech players may be adjusting their infrastructure strategies.

South Korea's export-dependent economy makes it especially vulnerable to tech sector volatility, given its position as a global semiconductor manufacturing hub. The market reaction suggests investors are becoming more selective about AI-related investments.