SK Hynix stock dropped 4.8% in early Nasdaq trading Tuesday, extending a steep 7.5% fall from the previous day. The semiconductor company’s share price has plunged almost 47% since hitting its June high, wiping out about $600 billion in market value in just over a month. This sharp decline reflects mounting investor anxiety over AI-related chip demand and intensifying competition from China.
The broader tech sector also felt pressure, with Micron Technology shares falling more than 4% and Samsung plummeting over 13% in Seoul. The sell-off tracks a wider risk-off mood as Nasdaq and S&P 500 futures slipped, while SK Hynix itself fell 14% on the Korean exchange before its U.S. premarket losses. Market watchers highlight concerns about a slowdown in hyperscaler spending on AI infrastructure and the entry of Chinese memory chipmaker CXMT, which recently debuted strongly on the Shanghai exchange.
Investor Fears and Expectations
Reports of rapid advancements in China’s chip manufacturing capabilities, especially in deep-ultraviolet lithography, have rattled investors worried about accelerated domestic production. Andy Wong from Pictet Asset Management pointed out the debate over whether companies like SK Hynix might be overcharging customers in the AI supply chain. Meanwhile, Kim Minji of Must Asset Management cautioned that even strong earnings might not shift sentiment unless SK Hynix raises shareholder returns through buybacks or if hyperscalers increase capital spending.
Wall Street anticipates a solid second-quarter report due Wednesday, with revenue expected to surge 278.6% year-over-year to approximately ₩84.17 trillion. Barclays maintains a Buy rating and $330 price target, signaling potential gains of 130% from current levels if the company meets or exceeds forecasts.
