Asian chip stocks plunged across the board today, with SK Hynix among the hardest hit.
The trigger was an announcement on October 12 by China’s ChangXin Memory Technologies (CXMT) that it had made progress on a 4F² DRAM cell architecture and plans to begin mass production by the end of this year of a new generation of DDR5 server memory based on the technology. The market is concerned that once domestic DRAM production scales up, the global memory market’s “supply shortage” narrative could unravel, putting pressure on the high-margin profits of major South Korean manufacturers.
The numbers: SK Hynix fell more than 7% at one point in morning trading, with its share price dropping to around 1.509 million won, marking a sharp decline for the second consecutive trading day. Samsung Electronics fell about 5%, the KOSPI briefly dropped more than 4%, and SoftBank Group fell more than 8% in Japan. U.S. semiconductor stocks had already taken a hit overnight: the Philadelphia Semiconductor Index fell 2.7%, Micron dropped 3.9%, and SanDisk fell 6%.
Adding to the macroeconomic pressure, the U.S. will release CPI data on October 14, while the CEOs of Intel and Broadcom have warned that financing conditions for AI investment could become a headwind. Investors are choosing to pull back first.
The takeaway for crypto markets: $BTC $ETH has recently shown a meaningful correlation with Nasdaq tech stocks, and semiconductors are a core asset in the AI narrative. When the AI supply chain faces a double blow from “intensifying competition + valuation contraction,” risk sentiment can spill over from the Nasdaq into crypto markets. Tomorrow night’s CPI release is the next key event; consider reducing leverage ahead of the volatility.
The above does not constitute investment advice. DYOR; trading involves risk.
#SKHynixSharesDrop7.1%
#存储芯片 #AI
The trigger was an announcement on October 12 by China’s ChangXin Memory Technologies (CXMT) that it had made progress on a 4F² DRAM cell architecture and plans to begin mass production by the end of this year of a new generation of DDR5 server memory based on the technology. The market is concerned that once domestic DRAM production scales up, the global memory market’s “supply shortage” narrative could unravel, putting pressure on the high-margin profits of major South Korean manufacturers.
The numbers: SK Hynix fell more than 7% at one point in morning trading, with its share price dropping to around 1.509 million won, marking a sharp decline for the second consecutive trading day. Samsung Electronics fell about 5%, the KOSPI briefly dropped more than 4%, and SoftBank Group fell more than 8% in Japan. U.S. semiconductor stocks had already taken a hit overnight: the Philadelphia Semiconductor Index fell 2.7%, Micron dropped 3.9%, and SanDisk fell 6%.
Adding to the macroeconomic pressure, the U.S. will release CPI data on October 14, while the CEOs of Intel and Broadcom have warned that financing conditions for AI investment could become a headwind. Investors are choosing to pull back first.
The takeaway for crypto markets: $BTC $ETH has recently shown a meaningful correlation with Nasdaq tech stocks, and semiconductors are a core asset in the AI narrative. When the AI supply chain faces a double blow from “intensifying competition + valuation contraction,” risk sentiment can spill over from the Nasdaq into crypto markets. Tomorrow night’s CPI release is the next key event; consider reducing leverage ahead of the volatility.
The above does not constitute investment advice. DYOR; trading involves risk.
#SKHynixSharesDrop7.1%
#存储芯片 #AI