Samsung, SK hynix Tumble as China Memory Threat Spooks Investors

Samsung and SK Hynix shares dropped 8% and 4% respectively, as Broadcom and Intel executives warned of financing constraints for AI infrastructure. Nvidia's China AI chip market share fell to 34% in H1 2026, while Huawei gained 28%, according to IDC. The comments triggered a sell-off in AI-linked stocks.

Samsung Electronics reported a quarterly operating profit of 10.74 trillion won ($7.7 billion), highlighting a semiconductor boom. Analysts warn that South Korea's heavy reliance on chip exports and tech shares makes it vulnerable to AI investment slowdowns. Semiconductors accounted for 25% of South Korea's total exports last year, and a retreat in AI demand could impact exports and the stock market.

Asian tech stocks fell Tuesday, led by declines in SK Hynix (8%), Samsung Electronics (7%), and SoftBank Group (9%). Chipmakers and AI-linked companies were impacted by U.S. semiconductor sell-offs. The Nasdaq Composite dropped 0.44% and Micron Technology fell 3.9% on Monday. Investors are reassessing AI valuations and competition in the memory-chip market.

Asian tech stocks fell, with SK Hynix and Samsung Electronics each dropping over 8% due to U.S. chip stock weakness and AI investment concerns. SoftBank and Japanese semiconductor equipment stocks also declined. CXMT's tech progress added to competitive jitters, while analysts noted profit-taking and funding pressures in the AI industry. Samsung Electronics' earnings report on October 29th is a key focus.

South Korea's KOSPI index dropped nearly 7% to 5,940.48 by late morning, driven by foreign selling in chip stocks. Samsung Electronics fell 7.3% and SK Hynix 8.4%. The decline followed remarks from a Chinese memory maker about new technology. Foreign investors sold 2.3 trillion won ($1.7 billion) by 11:20 a.m.

South Korea's KOSPI index fell 6.49% to 5,969.68, triggering a sell-side circuit breaker. Heavy foreign selling and semiconductor stock declines, including Samsung Electronics and SK Hynix, drove the drop. The selloff was fueled by concerns about Chinese chipmaker CXMT's technological advancements. The KOSDAQ index also fell 4.40%. Goldman Sachs raised its price target for ASMPT to HK$183, citing strong demand in AI and photonics equipment.