SK Hynix Drops 13% as AI Chip Stocks Face Heavy Selling

SK Hynix shares fell nearly 13 percent in early trading, while Samsung Electronics dropped over 12 percent as a severe sell off swept across Asian markets. The sudden downturn erased billions of dollars in market value across Korea, Japan, and Taiwan during a single session, extending a broader pullback in artificial intelligence linked hardware firms that started after Wall Street chip stocks weakened.

Market nervousness grew following reports about heavy financial backing for massive data center projects, which caused investors to question the true strength of artificial intelligence demand. At the same time, Chinese memory maker CXMT surged during its market debut, and new domestic lithography tools have narrowed the technological gap with Korean market leaders. Analysts note that these developments threaten existing chip supply deals with major American technology companies.

Industry experts point out that widespread uncertainty about how artificial intelligence spending will eventually pay off is driving the volatility. While some market watchers expect the bumpy ride to continue, others believe the long term opportunity for memory makers remains solid. Investors are now closely watching upcoming quarterly earnings reports to see if strong demand can justify the recent turbulence.