South Korean semiconductor shares tumbled on Tuesday, extending a rout in chipmakers after another weak session on Wall Street:
SK Hynix plunged more than 10%, while Samsung Electronics fell over 8%:
Other AI-linked names also came under heavy selling, with Samsung SDI dropping over 7%, LG Innotek sliding nearly 14%, Seoul Semiconductor falling about 6%, and LG Chem losing more than 4%:
Japan's semiconductor sector also traded lower, with Tokyo Electron dropping more than 9%, Advantest sliding over 8%, while SoftBank Group, a major AI investment proxy, fell nearly 5%:
The selloff followed another weak session for U.S. semiconductor stocks:
Samsung Electronics and SK Hynix are among the world's largest suppliers of high-bandwidth memory chips used in AI servers, making their shares particularly sensitive to shifts in expectations for spending by U.S. hyperscalers:
Sharp swings in SK Hynix shares underscore the uncertainty surrounding the AI investment cycle, said Acadian Asset Management's senior vice president Owen Lamont:
