Shares of Micron (MU) and SK Hynix (SKHY) fell 5% on Tuesday amid a global sell-off in memory chip stocks that deepened after South Korea’s benchmark KOSPI (^KS11) fell.
In South Korea, SK Hynix (000660.KS) and Samsung Electronics (005930.KS) fell 10% and 7%, respectively, extending their losing streak to five consecutive sessions. The two chipmakers account for more than half of the total capitalization of the South Korean stock market.
The sale continues market reaction after Chinese memory maker CXMT (688825.SS) announced progress on a new memory cell design designed to pack more storage into less physical space.
CXMT aims to introduce a new server memory product built on this architecture by the end of 2026.
The move threatens to intensify competition for Samsung, SK Hynix and US company Micron, which together account for around 90% of the global DRAM market.
934.34 -54.70 (-5.53%)
At 11:31:01 a.m. EDT. Open market.
UM SKHY 005930.KS
Micron, SK Hynix and Samsung have been the biggest beneficiaries of AI trading over the past year, amid growing demand for memory and storage chips driven by the global buildout of AI data centers. All three memory makers hit a $1 trillion valuation over the summer. All three stocks have since reached all-time highs.
Last week, Samsung reported a record third-quarter profit of $80 billion, but the forecast did little to boost the rest of the chip sector.
Micron reported strong quarterly results in September. The stock is up about 240% year to date.
Ines Ferre is a senior economics reporter for Yahoo Finance.
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