South Korean chip stocks got hammered today. SK Hynix closed down more than 11%, and Samsung fell over 9%. SKDD, a 2x short on Hynix, jumped 21% in a single day, trading over $20 million—a hefty volume for a stock token.
The trigger was a downward revision to expectations for growth in capital spending by major players; it had nothing to do with any company’s earnings report. The most expensive segment, HBM, took the first hit. Just the other day, people were talking about shortages and rising prices, and now it’s been slammed back down.
There was no cushion at all in this sell-off. Anyone who chased memory stocks near their highs had nowhere to hide today. South Korea has already called an emergency meeting to stabilize the market. Whether calls to action can stop this valuation rout—we’ll find out at the open tomorrow.
The trigger was a downward revision to expectations for growth in capital spending by major players; it had nothing to do with any company’s earnings report. The most expensive segment, HBM, took the first hit. Just the other day, people were talking about shortages and rising prices, and now it’s been slammed back down.
There was no cushion at all in this sell-off. Anyone who chased memory stocks near their highs had nowhere to hide today. South Korea has already called an emergency meeting to stabilize the market. Whether calls to action can stop this valuation rout—we’ll find out at the open tomorrow.