Taiwanese connector maker Chiabase (6715) has fallen the maximum allowed amount two days in a row, a sharp reversal that hurts anyone who bought into the recent AI-driven run-up.

• The stock jumped to near 492 in late August, then collapsed to limit-down at 363.5 with heavy unsold sell orders piling up.
• Second-quarter results were weak: sales fell 16%, profit margins collapsed, and the company swung to a loss.
• Enthusiasm for AI-linked stocks cooled, removing the support that had kept the shares high despite bad numbers.
• A new share sale priced at 310 is about to hit the market, and those cheap new shares becoming tradable is adding pressure.

Outlook: With weak earnings and fresh shares landing at a much lower price, the selling is likely to continue near term.