Samsung Electronics and SK Hynix shares tumbled more than 5% on Tuesday, marking a fifth consecutive day of losses. The slide dragged the Kospi benchmark down as much as 4.7%.
The trigger? A report that China's CXMT Corp. has made progress on a new memory architecture—one that Samsung and SK Hynix are also developing. Ha SeokKeun, chief investment officer at Eugene Asset Management, noted that uncertainty over whether the AI upcycle can last into 2028 is weighing on valuations.
Broadcom CEO's comments on the "gambling-like" nature of AI stocks added to the anxiety. Micron Technology shares fell 3.9% overnight in the US, signaling a broader sector pullback rather than isolated Korean jitters.
South Korean bonds have also been under pressure this year, with inflation concerns from Middle East oil price spikes and rising Treasury yields. Seoul has vowed measures to curb rising yields, but the semiconductor boom continues to drive stronger-than-expected economic growth.