Concerns over Meta's artificial intelligence (AI) investments have led to a decline in shares of SK Hynix, South Korea's leading semiconductor company, which fell more than 4% in early trading.
As of 9:55 a.m. on July 3, SK Hynix shares were trading at 2,082,000 won, down 105,000 won (4.80%) from the previous day. The stock opened at 2,197,000 won and briefly rose to 2,237,000 won before reversing gains and declining.
The previous day, news that Meta is considering selling excess AI computing resources through a cloud service raised concerns about a slowdown in AI infrastructure investments, triggering a sell-off in global semiconductor stocks. The Philadelphia Semiconductor Index dropped over 6% in a single day, with Samsung Electronics and SK Hynix leading the decline in South Korea, falling 9.06% and 14.57%, respectively, contributing to a significant drop in the KOSPI index.
The downward trend in semiconductor stocks continued on this day, with Samsung Electronics trading at 28,550 won, down 500 won (0.17%), failing to recover from the previous day's losses.
In the U.S. stock market, technology stocks, particularly in the semiconductor sector, also faced declines. Micron fell by 5.49%, while major semiconductor companies such as Nvidia (-1.39%), Broadcom (-2.41%), AMD (-4.26%), Intel (-5.25%), and Marvell Technology (-9.84%) all experienced losses. The Nasdaq index, heavily weighted in technology stocks, closed down 0.80%.
However, analysts believe it is premature to interpret this correction as a fundamental weakening of the AI industry.
Han Ji-young, a researcher at Kiwoom Securities, stated, "It is crucial to distinguish whether the reasons behind the semiconductor decline are fundamental weaknesses or mere noise. In this context, interpreting Meta's cloud venture utilizing surplus computing power as a sign of overinvestment in AI is excessive anxiety."
He added, "The slowdown in AI demand has not yet materialized, and the earnings fundamentals of the KOSPI, including semiconductors, have not been damaged. Events that could reverse the sentiment, such as Samsung Electronics' preliminary results and SK Hynix's ADR listing, are on the horizon."
Seo Sang-young, a researcher at Mirae Asset Securities, also noted, "The recent decline in the semiconductor sector is primarily due to growing skepticism about whether the expansion of data center investments will translate into actual server and memory demand, rather than a slowdown in AI demand. Samsung Electronics' performance and TSMC's monthly sales are key indicators to watch."
* This article has been translated by AI.
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