Samsung and SK Hynix shares plunge amid global semiconductor selloff
Business
Samsung and SK Hynix shares dropped sharply by nearly 8% and around 9% as a worldwide selloff in semiconductor stocks rolled from Wall Street to Asia.
Both companies have been riding high thanks to the AI boom since their memory chips are key for powering AI servers.
Analysts attribute drop to profit taking
There wasn't any bad news about Samsung or SK Hynix specifically. Instead, analysts say investors were cashing in after a long rally and getting cautious about high stock prices.
Reports of companies hedging against possible memory chip price drops also made people nervous.
Still, experts see this as just a short-term dip, not a sign that demand for AI chips is fading.
All eyes are now on TSMC's upcoming earnings to get a sense of where the chip market heads next.