SK Hynix shares plunged over 10% as Asian technology stocks faced volatility amid AI investment cycles
SK Hynix shares dropped 10.4% on Thursday following a broader selloff in Asian technology stocks, driven by profit-taking and risk reduction ahead of upcoming U.S. employment data. The memory chipmaker faced significant losses alongside its rival Samsung Electronics, which declined 6.13%, as investors weighed the sustainability of aggressive artificial intelligence spending. While Asian benchmarks like the Kospi fell sharply, European and U.S. markets showed mixed results, with the Dow Jones Industrial Average reaching a new record high. Global markets remain influenced by the ongoing U.S. conflict with Iran, which has caused oil prices to fluctuate significantly. President Trump said a deal to reopen the Strait of Hormuz could be imminent, providing potential relief to energy markets. Despite the volatility in the tech sector, analysts remain optimistic about the long-term growth driven by AI and defense spending. Investors are now shifting their focus from rewarding companies for AI spending to assessing the actual revenue and earnings generated by these investments.