New Delhi, June 9 -- Optimism on an artificial intelligence-led investment boom is facing a reality check globally. What started with the tech-heavy Nasdaq Composite Index's over 4% drop on Friday-its biggest since April 2025-spread quickly to the tech-dominated Asian markets of South Korea, Taiwan and Japan on Monday. Although not seen as an AI play yet, India too felt the heat.

There has been euphoria over expectations that increased AI adoption would create new software spending and digital transformation opportunities for large IT companies/hyperscalers and replace traditional service models. Asian companies with exposure to the AI value chain hogged the limelight amid AI product launches and robust demand for high-bandwidth memory c...