Asian semiconductor stocks tumble; SK Hynix and Samsung Electronics drop amid tech sell-off.
Asian semiconductor stocks experienced a widespread decline Thursday, mirroring a sell-off seen in U.S. chipmakers overnight. Shares of SK Hynix closed significantly lower in Seoul, amid growing investor concern over valuations in the AI sector. Domestic rival Samsung Electronics also dropped more than 8%, reflecting broader weakness across the industry. Analysts suggest the retreat is largely profit-taking following a sharp, prolonged rally in tech stocks, rather than an indication of fundamental deterioration. The weakness was tracked across Asia, affecting major players in Japan and China. Louis Kondratev noted that the concentration of semiconductors within indices has made sustained gains difficult, comparing the current level to historical averages. While demand for advanced memory chips remains strong, market participants are reportedly reassessing lofty valuations. The sell-off occurred despite positive guidance from the Dutch chip-equipment maker, ASML. Overall, the report underscores investor caution as the market digests recent gains in the technology sector.