Asian Chip Stocks Sink For A Second Straight Day-Could US Firms Follow?
Asian chip stocks, including SK Hynix and Samsung, have experienced significant sell-offs following earnings misses and concerns over Chinese competition. The market decline reflects broader anxiety regarding the sustainability of the AI-fueled semiconductor rally.
Why it matters
As semiconductors are the backbone of AI infrastructure, volatility in this sector signals potential shifts in global tech investment and supply chain stability.
Topline South Korean stocks faced a second straight day of losses Wednesday, led by SK Hynix, as the memory chipmaker’s record AI-fueled earnings fell short of the market’s high expectations and were further dampened by concerns about chipmaking advancements in China.
SK Hynix shares slumped nearly 10% after an earnings miss. Copyright 2018 The Associated Press. All rights reserved. Key Facts South Korea’s benchmark KOSPI index fell nearly 13% on Wednesday—triggering a halt in trading—before closing 6% down.
The KOSPI index has fallen by more than 15% in the past two days amid concerns about the AI-fueled rally, which has boosted Korea’s top chipmaking stocks.
SK Hynix reported a near sixfold increase in operating profit to a record KRW 60.5 trillion ($42 billion) in the three months ending in June, but this fell short of market forecasts of around KRW 64 trillion ($44 billion).
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in