Global stock markets are down as concerns rise about high valuations of AI companies. Asian and European markets followed the U.S. plunge after warnings of a potential 20% correction. Chipmaking giants like TSMC and Samsung saw significant drops, impacting major suppliers like Nvidia. SoftBank Group lost 10%, losing $23 billion in value.

Tech-focused Nasdaq and S&P 500 experienced their largest one-day drop in almost a month, with Palantir, Oracle, and Nvidia all falling. Post-market results from AMD saw a 5% drop in stock. S&P 500 and Nasdaq futures were also down. Analysts fear an impending equity correction due to concerns over tech valuations.

Michael Burry, known for betting against the U.S. housing market, has made bets against Nvidia and Palantir, purchasing put options. Palantir’s CEO accuses short-sellers of questioning the AI revolution. Investment director Russ Mould believes this raises further debate over whether AI-related stocks are in a bubble.

Read more at Yahoo Finance: Market selloff goes global as AI valuation concerns deepen