Samsung and SK Hynix shares plunge amid foreign investor sell‑off and AI funding concerns
Samsung Electronics and SK Hynix saw their stocks tumble sharply in October, falling 23.9% and 31.5% over seven trading sessions that began on Oct. 6. A separate May‑week sell‑off saw the shares drop 17.8% and 24.3%, their steepest weekly declines since the 2008 global financial crisis. The declines were driven by massive foreign‑investor net selling – about ₩8.4 trillion in total, with Samsung losing ₩3.4763 trillion and SK Hynix ₩5.3565 trillion – and worries that funding constraints at U.S. AI data‑center operators could curb memory demand. Analysts are split on whether the moves represent an excessive correction or signal further downside.
Why it matters
The sharp price drops have erased a large portion of market capitalisation, creating valuation risk for investors holding the stocks. Analysts note that a rebound may depend on easing financing conditions for AI data‑center builders, while others warn that continued volatility could persist.
Key facts
- 1Samsung Electronics shares fell 23.9% and SK Hynix shares fell 31.5% over seven consecutive trading sessions starting Oct. 6. koreatimes.co.kr
- 2In the week of May 12‑16, Samsung fell 17.8% to ₩215,500 and SK Hynix fell 24.3% to ₩1.272 million, their worst weekly declines since 2008. finance.biggo.com
- 3Foreign investors sold a total of ₩8.4 trillion in Korean chip stocks during that week, with Samsung accounting for ₩3.4763 trillion and SK Hynix for ₩5.3565 trillion. finance.biggo.com
- 4Samsung’s foreign ownership fell to 45.98% as of May 16, the lowest level in roughly 17 years. finance.biggo.com
- 5SK Hynix’s foreign ownership fell to 48.85% as of May 16, its lowest since Dec 23 2021. finance.biggo.com
- 6Analysts attribute the sell‑off to weak investor sentiment and concerns over AI data‑center financing, with some calling it an excessive correction and others warning of continued volatility. koreatimes.co.kr
Summary written by AlphAI AI Desk from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.