Kospi falls 3.59% as AI spending fears hit Samsung and SK hynix
The benchmark closed at 5,648.79 with SK hynix down 5.03% and Samsung Electronics down 4.15%, after the PHLX chip index fell 3.4% overnight; analysts cited doubts about returns on AI infrastructure spending.
Why it matters
Korea's market is heavily weighted to the two memory makers that supply high-bandwidth memory for AI accelerators, so it reacts sharply when investors question AI capex. Tuesday's fall followed a 7.2% plunge in the PHLX chip index on Friday and a further 3.4% drop on Monday, and foreigners sold a net 1.5 trillion won of Korean shares. Samsung Electro-Mechanics, a supplier of AI server components, fell 7.38%. Watch whether the selling spreads through Asian chip suppliers and how US chip stocks trade around the midterm elections.
Key facts
- Kospi closed at 5,648.79, down 3.59%
- SK hynix fell 5.03%; Samsung Electronics 4.15%
- PHLX chip index fell 3.4% overnight after a 7.2% drop on Friday
- Foreigners net sold 1.5 trillion won