Seoul-listed shares of Samsung Electronics Co. and SK Hynix Inc. (NASDAQ:SKHY) fell sharply on Monday, extending last week’s sell-off and dragging South Korea’s benchmark KOSPI index lower, as investors continued to assess the implications of China’s latest AI advances.
AI Chip Sell-Off Deepens
Samsung fell as much as 5.8% to KRW 2,40,000 ($162.28), and SK Hynix also fell 5.8% to KRW 17,35,000 ($1,172.76), extending a broader retreat in AI-linked stocks this month.
The sell-off followed renewed concerns that heavy spending on AI infrastructure has pushed valuations to unsustainable levels, prompting investors to lock in profits after months of strong gains.
The pressure on South Korean chipmakers contrasted with Taiwan, where the benchmark Taiex index slipped just 0.50% and Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) rebounded 1.31% after last week’s sharp decline.
