SK Hynix shares plunged 57% from June peak, erasing $660 billion in market value. The slide comes just months after the memory‑chip titan recorded a 1,000% year‑on‑year rally, catapulting the KOSPI to record highs.
The decline follows a broader sell‑off that saw the KOSPI trigger a circuit breaker after an 8% intraday fall, halting trading for 20 minutes. Foreign investors dumped $1.8 billion on Thursday, pushing total October outflows past $10 billion.
Sector‑wide, Japanese names such as Kioxia and Ibiden lagged, while U.S. AI‑focused firms like CoreWeave saw bond yields spike to 15%, echoing funding fears that have seeped into the Korean market.
Vantage Global Prime analyst Hebe Chen warned that the shock‑absorber role of the Korean market is accelerating as AI‑spending volatility and higher U.S. rate expectations tighten liquidity. She noted that Samsung and SK Hynix are already being pressured by the same dynamics.
Life Asset Management CEO Kang DaeKwun cautioned that the KOSPI’s valuation has dipped below 5× forward earnings, a 50% slide from last year, and urged investors to monitor tech‑funding issues before considering any entry point.
Analysts are now watching Fed minutes for clues on a potential third rate hike this year, which could further dent AI‑driven chip demand. SK Hynix’s next earnings call is slated for December, where management may outline a strategy to stem the current sell‑off.