SK Hynix and Samsung Lose $91 Billion as AI Slowdown Fears Hit Markets

SK hynix shares dropped 5.4% and Samsung Electronics fell 3.4% in early Monday trading in Seoul, dragging the KOSPI index down 3.2%. By 9:19 a.m. local time, the two memory chip giants had lost approximately 123 trillion won, or $91 billion, in combined market capitalization. The sharp decline reversed much of the optimism that had supported Asian AI hardware stocks during the previous week.

The selling pressure followed a weekend that saw Anthropic’s chief executive call for a slowdown in AI development, including potential limits on training compute. These comments landed against a backdrop of elevated oil prices above $103 per barrel and expectations for a U.S. interest rate increase later in the week. The market reaction highlights the direct exposure of Korean equities to the core components of artificial intelligence infrastructure.

Korean Memory Makers Lead Regional Losses

South Korea’s stock market is disproportionately affected because it is dominated by companies that manufacture the memory chips used in AI servers. SK hynix, which supplies high-bandwidth memory, saw its market value fall to about 1,252 trillion won. Samsung Electronics, the other major supplier, ended the session at roughly 1,464 trillion won. The holding company SK Square, which owns the largest stake in SK hynix, experienced a steeper 7.3% drop.

The decline extended to the supply chain, with Hanmi Semiconductor, a maker of equipment for assembling high-bandwidth memory, falling 2.8%. The KOSDAQ index, which tracks smaller companies, decreased by 1.9%. Trading on the Nextrade alternative exchange showed the downward momentum began before the regular session, with SK hynix already down 3.15% at 8:15 a.m.

Tokyo Equipment Stocks Show Lesser Impact

Japanese markets experienced a milder decline, with the Nikkei 225 index down 0.9% to 1.1% in early trade. This difference reflects the distinct composition of each market; Tokyo is home to chip-testing equipment makers rather than the memory producers that dominate Seoul. Advantest, a key player in semiconductor testing, fell 4.1%, while Tokyo Electron dropped 2.1%.

Other Japanese tech names also faced pressure. Lasertec declined by 2.8%, and fiber-optic cable maker Fujikura, a supplier to data centers, remained untraded in the early minutes due to wide bid-ask spreads. SoftBank Group and memory maker Kioxia had not recorded trades at the time of the latest data, though both had fallen sharply on Friday, with Kioxia down 7.0% and SoftBank down 4.0%.

Macro Headwinds Compound AI Sector Jitters

The sector-specific sell-off occurred amid broader macroeconomic stress. Oil prices remained above $102 per barrel, and negotiations regarding the Strait of Hormuz were postponed. Additionally, market participants are bracing for a U.S. Federal Reserve interest rate increase expected on Wednesday. These factors combined to create a risk-off sentiment across Asian equity markets.

SoftBank Group faces additional specific financial obligations, as it is set to repay the remaining $25.9 billion of its $40 billion bridge loan to OpenAI on Tuesday, according to reports. This repayment, coupled with the broader hesitation toward AI infrastructure spending, underscores the financial scrutiny currently facing major technology investors. The movement in these stocks serves as a real-time indicator of how the market values the near-term trajectory of artificial intelligence adoption.