Samsung Electronics and SK Hynix shares fell sharply by 6% to 9% in early trading, raising concerns among investors. Analysts attribute the decline to a combination of domestic and international semiconductor market conditions and deteriorating investor sentiment.
On July 28, Samsung's stock dropped over 6% to 237,000 won, while SK Hynix fell more than 8% to 1,659,000 won. Both stocks have seen significant declines from their record highs last month.
Market analysts suggest that a large volume of profit-taking in AI semiconductor-related stocks has significantly impacted the market. Samsung and SK Hynix had surged earlier this year due to expectations of increased demand for AI memory (HBM), but recent concerns over high valuations have dampened investor enthusiasm.
Additionally, the adjustment of AI semiconductor stocks, including Nvidia, in the U.S. market has also influenced domestic investor sentiment. When the global semiconductor sector weakens, it often leads to increased foreign selling of major domestic semiconductor stocks.
There are also concerns that the explosive debut of Chinese semiconductor company Changxin Memory Technologies (CXMT) may have affected investor sentiment. The Chinese government's accelerated support for the semiconductor industry raises fears of intensified competition in the memory market in the long term. However, industry assessments indicate that CXMT still lags significantly behind Samsung and SK Hynix in terms of technology and market share.
Industry experts view the current decline as a correction driven more by short-term investor sentiment and supply-demand factors rather than a deterioration in corporate fundamentals. Demand for AI server HBM remains robust, and the ability of Samsung to regain its HBM competitiveness and SK Hynix to maintain its market share in AI memory are seen as key variables for future stock performance.
However, if high volatility continues, major semiconductor stocks may be more influenced by market sentiment and global stock trends than by their actual performance.
* This article has been translated by AI.
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