AI-related stocks were heavily sold in the US equity market, sending Kioxia’s share price down approximately 60%. Credit concerns surrounding data center companies and the discovery of a vulnerability in PHP have also been reported as signs of an AI bubble collapse.
Selling spread across AI-related stocks in the US market, causing the group of stocks that had driven the market to fall sharply. There have been reports that stocks supporting demand from data centers have been particularly affected.
Kioxia’s share price is reportedly down approximately 60%. The adjustment in AI-related stocks is viewed as a factor behind the share price movement.
The growing credit concerns surrounding data center companies such as CoreWeave have been cited as one factor behind the turmoil, while there have also been reports that a serious vulnerability has been found in PHP, a programming language that has long been used in web development.
The reports referred to as the “PHP shock” are said to be heightening caution over AI investment, given that PHP is used on nearly 70% of websites worldwide.