A sharp sell-off in Asian memory chip stocks this week signals growing investor doubts over whether the sector’s AI-driven profit boom can last, even as soaring prices drive strong quarterly earnings across the sector.
Shares in market leaders Samsung Electronics and SK Hynix plunged in Seoul on Tuesday, extending a days-long slide that has also swept up Chinese rival ChangXin Memory Technologies (CXMT).
Samsung and SK Hynix closed down 7.4 per cent and 10.1 per cent, respectively. The companies have fallen about 16 per cent and 22 per cent, respectively, over the past five trading sessions. Together, they account for about half the weight of South Korea’s benchmark Kospi index, which closed 5.5 per cent lower after falling more than 7 per cent intraday.
In Shanghai, CXMT, China’s leading dynamic random-access memory (DRAM) maker, closed down 2.8 per cent at 46.99 yuan (US$7.01), extending its drop since the close before China’s National Day holiday to about 14 per cent.