iShares MSCI South Korea ETF holds over 40% in SK Hynix and Samsung, key players in the AI-driven memory chip boom.
The iShares MSCI South Korea ETF (EWY) has fallen 22% from its June high, reflecting a pullback in memory chip stocks despite strong AI demand. SK Hynix and Samsung, which together account for over 40% of the ETF’s holdings, have driven much of the volatility as the sector’s rally shows signs of fatigue.
SK Hynix remains a dominant force in high-performance memory (HPM), bolstered by its partnership with Nvidia and a stranglehold on the HPM market. Analysts project AI-driven demand for memory chips to persist through 2030, though some investors, including high-profile shorts, warn of potential downside risks.
With Samsung lacking a U.S. listing, EWY remains a primary vehicle for American investors seeking exposure to the memory chip sector. SK Hynix’s recent U.S. listing (NASDAQ:SKHY) offers an additional option, though volatility in memory stocks may deter risk-averse traders.