AI Spending Fears Drive $25.5 Billion From Asian Stocks as Taiwan Bears the Brunt
Foreign investors pulled about $25.5 billion from seven major Asian equity markets in July, with Taiwan accounting for $22.95 billion of the outflows amid concerns over AI spending, semiconductor demand and debt.
Why it matters: The AI investment cycle is increasingly being judged not only by demand growth but by the financial returns and debt burden behind infrastructure expansion.
Foreign investors pulled approximately $25.5 billion from major Asian equity markets in July as concerns over artificial-intelligence spending, semiconductor demand and technology-company cash burn intensified. Taiwan recorded approximately $22.95 billion in foreign outflows, while South Korea saw another $6.26 billion of net selling. The move highlights growing investor scrutiny of whether AI infrastructure spending can generate sufficient returns.