Taiwan stocks fell sharply this Tuesday as a broad selloff swept Asian markets, with investors rattled by reports of a massive AI infrastructure financing plan involving Nvidia and OpenAI. This in addition to a week packed with major central bank decisions and corporate earnings.

According to media reports, Nvidia plans to provide up to US$250 billion in financing guarantees for OpenAI to lease data centers and is discussing helping subsidize as much as US$350 billion in chip purchases. The reports fueled concerns among investors about circular financing, as Nvidia may be “paying for its own products” if demand for AI infrastructure falls short of expectations.

Japan’s Nikkei 225 and South Korea’s Kospi fell about 4% and 7%, respectively, shortly after opening. South Korea’s exchange briefly halted trading after sharp losses triggered a circuit breaker, while shares of chipmaker SK Hynix plunged more than 30% at one point.

Taiwan’s benchmark Taiex also came under heavy selling pressure, falling more than 2,000 points, or 3.8%, in morning trading to a session low of 41,565. The New Taiwan dollar weakened alongside the equity market, falling as much as NT$0.15 against the U.S. dollar to NT$32.455.

Investment consulting company Marbo’s CEO Wang Jung-hsu (王榮旭) said the correction reflected market positioning rather than deteriorating business fundamentals.

Wang said, “The fundamentals are actually not bad. Which company’s latest financial report shows poor performance? But the more this is the case, the harder it is for the market to shake out the floating capital and the leveraged trading.”

Wang said investor confidence remained fragile, causing markets to react negatively to new developments. He added that once leveraged positions are largely cleared from the market, stocks could stabilize because the long-term outlook for artificial intelligence has not changed.

Investors are also awaiting interest rate decisions this week from the U.S. Federal Reserve, the Bank of Japan, and the Bank of England, along with earnings reports from major technology companies, adding to market uncertainty.