Kospi index falls 4% as SK Hynix drops 31%
SK Hynix saw its shares drop to their lowest point since April, down 31% this month alone.
Investors are uneasy about how much companies will keep spending on AI, plus there's growing competition from China.
The company's big presence in the Kospi Index even helped pull the whole index down by 4% on Tuesday, October 20.
Semiconductor sector pressured by tight supply
The entire semiconductor sector is feeling the pressure from tight supply and more rivals entering the scene.
SK Hynix has lost nearly 59% of its value since summer highs, erasing gains from the recent AI memory surge.
Even SoftBank is seeing higher funding risks linked to AI bets.
Still, NVIDIA's CEO Jensen Huang remains upbeat about where AI is headed long term, so all eyes are now on upcoming earnings reports from tech giants like Tesla and Meta to see what happens next.