SK Hynix and Samsung Shares Plunge as CXMT Debuts

SK Hynix Inc. experienced a massive loss in market value between June and July 2026, with estimates ranging from $470 billion to $570 billion. The company's shares dropped 38% to 45% from June all-time highs, a trend that culminated in a 14.7% plunge on July 28. This decline reflects investor skepticism regarding the durability of AI hardware spending by hyperscalers and concerns over market overcrowding.

The downturn intensified on July 28 as Asian semiconductor stocks crashed following the stock market debut of the Chinese memory-chip maker ChangXin Memory Technologies (CXMT). Samsung Electronics also saw its shares plunge 13.4% in its steepest one-day decline in nearly two decades, contributing to a 10.8% drop in the benchmark KOSPI index. Other impacted firms included Japan's Kioxia Holdings and Taiwan's MediaTek.

Market volatility was further exacerbated by reports that Apple Inc. lobbied the U.S. administration to allow Chinese-made chips in its products and sought components from CXMT to mitigate cost pressures. Additionally, investors questioned the sustainability of AI infrastructure financing and circular funding following new deals from Nvidia worth over $750 billion. Despite the sell-off, SK Hynix is expected to report record June-quarter earnings on July 29, with projected sales of approximately $57 billion.