SK Hynix shares fall more than 9% as a broader Asian tech sell‑off mirrors losses on U.S. semiconductor stocks.
South Korean chip makers tumble amid profit‑taking
On Thursday, the Seoul‑listed shares of SK Hynix Inc. fell more than 9% after an 8% rally the day before. The drop erased the gains from Monday, when investors had taken profits amid concerns that AI‑related spending could slow. Domestic rival Samsung Electronics slid over 7%, while Seoul Semiconductor lost more than 5% and LG Innotek slipped about 1%.
Other local firms also felt the pressure. Samsung SDI declined more than 2% as the market’s mood turned sour across the board. The declines came after a volatile week for SK Hynix that began with its U.S. listing, which saw the stock’s steepest one‑day fall on Monday.
U.S. market losses spill over to Asia
Overnight, U.S. semiconductor shares fell sharply, setting the stage for the Asian pull‑back. Micron Technology sank 8%, Intel dropped more than 4%, and both Lam Research and Advanced Micro Devices slipped about 3%.
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“Today’s decline is largely a follow‑on to the US session overnight,” said Rolf Bulk, head of semiconductor & infrastructure equity research at Futurum Group. He cited a proposed moratorium on new data‑center construction in New York and reports that cloud‑provider CoreWeave is hedging against future memory‑price declines as marginally negative signals.
New York Governor Kathy Hochul ordered a temporary pause on large‑scale data‑center projects while the state crafts stricter standards for energy, water, and environmental impact. That policy move added to the negative sentiment surrounding hardware demand.
Japanese stocks joined the slide.
AI‑linked equipment maker Advantest fell more than 6%, SoftBank Group slid nearly 7%, and Tokyo Electron dropped over 5%. Renesas Electronics also declined 4%.
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Despite the downturn, ASML reported strong results. The Dutch lithography equipment supplier raised its full‑year sales outlook to between €43 billion and €45 billion, surpassing analyst expectations, and said it will increase production of extreme ultraviolet machines.
Trader Louis Kondratev of XFUNDs noted the recent pullback shows how crowded semiconductor trades have become after a prolonged AI‑driven rally. “Semiconductors alone now make up roughly 20% of the S&P 500, which is incredibly difficult to sustain,” he said, recalling that during the dot‑com bubble of 2000, the sector represented just over 8% of the index and has historically averaged between 2% and 5%.
Earnings momentum remains strong, but the pace of gains may become harder to sustain as investors reassess lofty valuations. “Earnings momentum has been very strong, but it’s mostly concentrated in semiconductors, and that momentum may begin to slow as valuations find their place,” he added.
Looking ahead, the market could see further volatility if AI spending slows or if regulatory actions on data‑center construction tighten. The interplay between corporate earnings, policy shifts, and investor sentiment will likely dictate whether the current correction deepens or stabilizes.
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