Global chipmakers and AI-related stocks fell after SK Hynix reduced AI memory chip expansion plans amid profitability concerns.
South Korean chip stocks led by Samsung and SK Hynix dropped sharply after SK Hynix announced plans to slow AI memory chip expansion in favor of cheaper DRAM. The Kospi index fell as investors reacted to concerns over tech companies’ ability to sustain high prices for advanced AI models and maintain profitability in the sector.
The selloff extended globally, hitting chipmakers and hyperscaler tech stocks. Prior sessions had shown resilience in AI-related equities, but worries about demand saturation and Federal Reserve policy shifts intensified the downturn. Market consensus had anticipated continued growth in AI infrastructure spending, making the pullback notable.
Negative sentiment was further fueled by broader macroeconomic concerns, including potential Federal Reserve interest rate hikes. The shift in strategy by SK Hynix underscored growing caution in the semiconductor sector.