SK Hynix Stock Crashes 9% as AI Fears Trigger Asian Tech Sell-Off

SK Hynix (SKHY) shares fell 6% to $153.04, extending a Seoul selloff. Western Digital (WDC) and Seagate (STX) dropped 7% each. The declines followed news from privately held Chinese memory maker ChangXin Memory Technologies (CXMT) about advancements in memory-cell design, triggering a global chip sector selloff. Investors are watching for CXMT's planned server memory product launch by year-end.

Goldman Sachs (GS) and UnitedHealth Group (UNH) reported strong earnings, boosting their stock prices. The S&P 500 slipped 0.1%, while the Dow Jones rose 0.6%. Chip stocks fell sharply, with Micron (MU) down 5.8%, Nvidia (NVDA) down 1.3%, and AMD (AMD) down 3.3%. Wells Fargo (WFC) reported weaker revenue, while JPMorgan (JPM) rose despite weaker earnings but beat net interest income forecasts.

South Korea's KOSPI index dropped 5% on Tuesday, with Samsung and SK Hynix falling 7% and 10% respectively, due to valuation concerns and Chinese competition. US chip stocks also declined, with the iShares Semiconductor ETF down 1%. Analysts cited progress by Chinese chipmaker CXTM as a factor. TSMC's earnings on Thursday are seen as a key test for the AI investment thesis.

Micron (MU) and SanDisk (SNDK) shares fell 5% and 4% respectively due to competition from Chinese rival CXMT, which plans to enter the high-end server memory market by year-end. The Roundhill Memory ETF (DRAM) dropped 5%, while the broader tech market (QQQ) declined 0.7%. Micron, which reported record Q4 results, is directly impacted as it competes in the same market CXMT is targeting.

Chinese chipmaker ChangXin Memory Technologies (CXMT) announced progress in memory chip design, causing global tech stocks to drop. CXMT's advancements may challenge competitors like Micron, SK Hynix, and Samsung. Micron fell 3.7% premarket, SK Hynix dropped 10%, and Samsung declined 7.4%. CXMT's market cap is 3.46 trillion yuan ($520 billion), with a 10% global DRAM market share, up from 4% a year ago.

Micron Technology Inc. (MU) shares fell 5.07% on October 13, 2026, due to reports of weakening memory chip demand and pricing. The company reported strong financials, including $54.2B in revenue and $37.7B in net income for the last quarter, with high profit margins. However, legal challenges from Netlist at the U.S. International Trade Commission over patent infringements on key memory products, including HBM3E, HBM4, and HBM4E, are adding to the pressure.