AI bubble fears cloud Asia stocks as China plans $70B chip push

This markets piece is a useful counterweight to pure tech optimism. It notes that Asia’s standout 2025 equity performance was heavily concentrated in AI‑linked names—chipmakers in Taiwan and Korea in particular—and that investors are now openly debating whether we’re closer to “AI fatigue” than a full‑blown bubble. At the same time, Beijing is reportedly weighing a $70 billion semiconductor support package, and recent IPOs of Chinese AI chip firms have been blockbuster events.([moneycontrol.com](https://www.moneycontrol.com/news/business/markets/ai-bubble-fears-and-policy-splits-loom-over-asia-stocks-in-2026-13755495.html?utm_source=openai))

The combination of potential over‑valuation and massive state‑backed capex is classic late‑cycle behaviour. For the race to AGI, that means two things. First, hardware and foundry capacity will likely keep expanding in the near term, supporting ever‑larger models and denser deployments even if stock prices wobble. Second, a future correction could re‑price some of the more marginal AI plays without necessarily derailing the core infrastructure build‑out, much like what happened with telecoms after the dot‑com bust.

For US‑centric investors and labs, the takeaway is that Asia is not just a supplier in the AI stack; it’s increasingly where a lot of public‑market AI risk is being warehoused. That shifts the geography of financial vulnerability if or when the current wave of exuberance breaks.