Significantly falling prices for SK Hynix and Samsung have not only caused share prices to plummet in South Korea. In Europe and the USA, the shares of companies from the semiconductor and IT industries also fell noticeably. Apparently this was due to a report about a change in strategy at SK Hynix, where capacities for the production of AI memory chips are to be expanded less in favor of DRAM. This has fueled concerns that demand for AI data centers is declining, summarizes Bloomberg. As a result, the shares of SK Hynix and Samsung each fell by more than 12 percent, and the South Korean Kospi index fell by 10 percent overall. The Nasdaq-100 closed around 2.2 percent in the red.
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Despite the blister, no big worries
Losses on the US markets were lower, but Intel and AMD lost a good 6 percent, and Micron even lost over 12 percent. In Europe, for example, ASML fell by around 6 percent. SpaceX has now even lost most of the profits it made since going public a week ago. For the remaining companies, the decline is mostly comparatively small corrections; overall, the shares in the industry are still clearly in positive territory. The shares of the major memory manufacturers have recently ensured that the South Korean stock market has overtaken several from other countries, including the German DAX.
Overall, there is still no uncertainty on the stock markets, writes CNBC. Several experts point out that there is still too much liquidity and that expectations of AI remain high. Meanwhile, Bloomberg quotes financial expert Paul Gambles as saying: “The AI bubble is by far the largest stock market bubble that humanity has ever experienced – both in terms of its size and scope.” Nevertheless, the markets have not lost confidence that prices will continue to rise. For that to happen, stocks would have to fall much further. On Wednesday, however, the first prices in Asia recovered a little.
(my)
