Samsung and SK Hynix Drop More Than 7% on AI and China Fears

Samsung Electronics and SK Hynix fell more than 7% in Seoul trading as concerns about China’s memory-chip advances combined with growing doubts over AI valuations and the durability of the semiconductor cycle.

Samsung Electronics dropped 7.29% and SK Hynix declined 8.35% by 11:20 p.m. ET Monday (03:20 UTC Tuesday). The KOSPI fell 6.05% to 5,997.99, prompting South Korea’s exchange to halt program trading in KOSPI stocks for five minutes.

ChangXin Storage recently disclosed key progress on a memory-chip architecture also being developed by Samsung and SK Hynix. The technology is not yet close to supporting large-scale commercial production, but the development has raised concerns about the Korean companies’ future pricing power and valuation premiums.

AI-related worries added to the selling. Broadcom CEO Hock Tan said demand for computing infrastructure remains above available supply, with the shortfall potentially lasting through 2029 or 2030. He also warned that access to capital could become the biggest constraint on AI expansion as hardware bottlenecks ease.

Samsung reported record results last week, but its shares failed to gain lasting momentum. Investors are now focused on whether the semiconductor upcycle can continue through 2028 and beyond.