The Kospi index plunged 4.67 percent on Thursday, triggering a temporary sell-side sidecar that halted program trading for five minutes. The index fell to 5,418.15, its lowest level in over a week. Semiconductor stocks bore the brunt of the losses, with Samsung Electronics dropping 5.16 percent and SK hynix falling 7.09 percent. The selloff reflected investor anxiety over tighter U.S. AI data center regulations following the Democratic Party's midterm election victory.
Key Takeaways
- The Kospi fell 4.67 percent, triggering a five-minute program trading halt via a sell-side sidecar mechanism
- Samsung Electronics dropped 5.16 percent and SK hynix fell 7.09 percent amid AI regulation fears
- Hyperscalers are expected to spend over $700 billion on AI data center capital investment this year
- Shell-and-core construction costs average $11.3 million per megawatt, while AI infrastructure fit-out costs reach $25 million per megawatt
- Arista Networks fell 11 percent after guiding 2027 revenue to about $18.5 billion versus $16.4 billion expected
- ADNOC and OpenAI partnered to advance the UAE's artificial intelligence ambitions
- xAI's Grok now routes nearly 60 percent of all AI agent trading volume on Coinbase
- NIST identified gaps in AI incident response and plans to form a new Task Group 8
- Vercel launched device-bound session credentials and a free AI code scanner for security review
- Naval Group and Thales created cortAIx France with 800 specialists focused on naval AI applications
Kospi triggers sell-side sidecar as AI regulation fears cause sharp drop
The Kospi index fell 4.67 percent on Thursday, triggering a temporary sell-side sidecar that halted program trading for five minutes. The drop pushed the index to 5,418.15, its lowest level in over a week. Investors worried about tighter U.S. regulations on AI data centers following the Democratic Party's victory in the midterm elections. The Korea Exchange activated the sidecar mechanism when the Kospi 200 Futures Index fell sharply.
South Korean shares fall to over one-week low on AI regulation concerns
The KOSPI fell more than 4 percent to around 5,417 on Thursday, hitting its lowest level in over a week. Semiconductor stocks led the losses, with Samsung Electronics dropping 5.16 percent and SK hynix falling 7.09 percent. The decline came as the Philadelphia Semiconductor Index fell 3.1 percent to a six-month low. Investors feared a Democrat-led Congress would impose stricter rules on AI data centers, raising costs and causing delays.
Five cheapest AI data center stocks to buy according to billionaires
AI data center investment is growing fast, with hyperscalers expected to spend over $700 billion on capital investment this year. CBRE reported that supply in primary North American markets rose 33.7 percent year over year to 10,903 megawatts while vacancy fell to 1.4 percent. JLL projects about 100 gigawatts of new capacity between 2026 and 2030, with roughly $1.2 trillion in real estate investment. Construction costs are rising, with shell-and-core costs averaging $11.3 million per megawatt in 2026, and AI infrastructure fit-out costs reaching as much as $25 million per megawatt.
Why I am buying the AI selloff with top picks for 2027
The author says recent election results point to slower data-center construction over the next 12 to 24 months due to rules, permits, and power limits. Companies tied to construction like contractors and power providers face the biggest pressure. The author prefers chip and component suppliers such as Marvell Technology, Lumentum, Astera Labs, Micron Technology, SanDisk, Western Digital, and Seagate Technology because they can serve computing demand across different locations. These companies have more flexibility than businesses tied to a single construction site.
ADNOC-OpenAI partnership proves UAE's AI ambitions, says AIQ CEO
AIQ CEO Dennis Jol discussed the partnership between ADNOC and OpenAI at the ADIPEC conference. He spoke with CNBC's Dan Murphy about the key themes at the event. The partnership highlights the United Arab Emirates' growing ambitions in artificial intelligence. AIQ is positioning itself as a major player in the region's AI development.
Grok dominates Coinbase AI agent trading volume
xAI's Grok now routes nearly 60% of all AI agent trading volume on Coinbase. During one week in September, Grok handled 59.54% of measured agentic trading volume. Coinbase's x402 payment protocol also saw a 10,780% surge in transactions during one October week. The platform launched Coinbase for Agents in June 2026 to connect AI assistants to user accounts.
Legal risks in AI training data use
Businesses using AI models for product development must carefully consider how they obtain and use training data. The United States lacks an overarching AI law, but existing intellectual property rules still apply. Companies should verify that data is legally available for training and document their data collection processes. Risks include using competitor data, violating customer contracts, or ignoring sector-specific regulations.
NIST finds gaps in AI incident response
The National Institute of Standards and Technology identified gaps in AI incident response and security. The report highlights limits in applying traditional incident response methods to AI systems. NIST plans to create an AI Incident Management Community of Interest and form Task Group 8 through the NIST AI Consortium. The agency will also review monitoring and logging practices to improve AI incident detection.
Arista and Ciena stocks fall amid AI selloff
Arista Networks fell 11% and Ciena dropped 15% as an AI hardware selloff deepened after Democrats' midterm sweep. Arista had just guided 2027 revenue to about $18.5 billion, far above the $16.4 billion analysts expected. Cisco also fell 8% after an analyst downgrade over AI hardware margin concerns. Investors sold AI networking stocks on fears a Democratic Congress could slow data center buildout.
Vercel launches device login security and AI code review
Vercel introduced Device Bound Session Credentials to tie login sessions to specific devices. The technology stores a private key in secure hardware so stolen cookies expire quickly. The company also launched Vercel Security Review in public beta, an AI code scanner that checks for vulnerabilities on every GitHub push. Security Review is free until November 10, 2026.
AI in Retail Trading: Advantage or Marketing Cost?
AI could help retail trading brokers with customer acquisition, support, and platform usability. However, AI tools are becoming widely available, so they may not give one broker a lasting edge. More user engagement does not always mean more profitable customers. The UK FCA warned that AI agents may compare products for consumers, making brands less important.
Naval Group and Thales Launch CortAIx France for Naval AI
Naval Group invested in cortAIx France, an AI company founded by Thales, to improve naval combat systems. The company has 800 specialists across five hubs working on AI for critical environments. Priority uses include faster threat detection, mission support, ship performance optimization, and predictive maintenance. The partnership aims to combine expertise to keep naval technology at the cutting edge.
Sources
- Kospi sell-side sidecar triggered as index plunges on AI regulation fears
- South Korean Shares Over 1-Week Low on AI Worries
- 5 Cheapest AI Data Center Stocks to Buy According to Billionaires
- Why I’m Buying the AI Selloff: My Top Picks for 2027
- ADNOC-OpenAI partnership proves UAE’s AI ambitions: AIQ CEO
- Grok now drives most of Coinbase's AI agent trading volume
- AI training data: Don’t run with scissors
- NIST Identifies AI Incident Response and Security Gaps
- Arista Sinks 11%, Ciena Down 15% as AI Selloff Deepens After Democratic Sweep
- Vercel ties login sessions to devices, rolls out AI security reviews in public beta
- AI in Retail Trading: Competitive Advantage or Broker Marketing Expense?
- Naval Group And Thales Launch CortAIx France To Advance Naval AI Capabilities
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