Samsung and SK Hynix Shares Fall Ahead of Earnings
Samsung Electronics and SK Hynix shares declined Tuesday, dragging down South Korea's KOSPI index despite expectations of record-breaking third-quarter profits.
Shares of Samsung Electronics and SK Hynix declined on Tuesday, pulling down South Korea's benchmark KOSPI index. The sell-off occurred as investors grew cautious ahead of third-quarter earnings reports, with foreign investors selling 564.5 billion won in South Korean shares.
Market pressure stemmed from a strong Korean won, workforce demands for higher AI-related bonuses, and reports of data center delays in the United States. These factors fueled concerns over a potential slowdown in AI-driven chip demand, despite projections that Samsung will report its largest-ever operating profit, exceeding 100 trillion won, and that SK Hynix will show significant growth.
Contradicting the market's caution, rival Micron Technology recently forecast robust AI demand and constrained supplies through the next year, suggesting that the underlying demand for memory chips remains strong.
