KOSPI Sinks Over 12% in Worst Two-Day Drop Ever as AI Chip Sell-Off Deepens After SK Hynix Misses Expecta - Benzinga

South Korean stock market experienced its worst two-day drop ever, with KOSPI sinking over 12%, driven by intensified selling in the AI chip sector following SK Hynix's disappointing performance. This... Read original →

The recent sell-off in AI chip stocks triggered by SK Hynix’s disappointing results has triggered a cascade effect across the entire semiconductor supply chain. Top-tier players like TSMC and NVIDIA are also under pressure, signaling investor concerns over the sustainability of AI chip demand growth. Technologically, while advanced process nodes continue to advance, rising production costs and declining capacity utilization are eroding profit margins. Geopolitical tensions, especially between the U.S. and China, are intensifying compliance risks and forcing companies to restructure their global supply chains. In response, industry leaders may pivot toward vertical integration or regionalized production strategies. Over the next 12 to 24 months, the semiconductor sector is expected to enter a period of structural adjustment, with slower AI chip growth and reduced capital expenditure becoming the new norm, as investors increasingly prioritize profitability and supply chain resilience.