Nvidia has secured a new memory-chip supply agreement, but the news is doing little to lift shares of key South Korean suppliers SK Hynix and Samsung Electronics. Both companies are facing heavy selling pressure amid broader concerns about the artificial intelligence trade.
South Korea’s Kospi index is on track for another day of steep losses, extending a recent downturn. The decline reflects fading investor enthusiasm for AI-related stocks that had previously driven strong gains.
Investors are questioning whether the rapid growth in AI chip demand can be sustained. The market is now recalibrating expectations after months of sky-high valuations.
Nvidia’s latest deal underscores its continued need for advanced memory chips used in AI processors. However, the agreement has not been enough to offset broader negative sentiment.
SK Hynix, a primary supplier of high-bandwidth memory to Nvidia, saw its shares drop sharply. Samsung Electronics, another major memory producer, also faced significant selling.
Analysts attribute the selloff to profit-taking and concerns about global economic headwinds. The AI sector’s recent rally had left many stocks trading at elevated levels.
The pressure on South Korean chipmakers highlights the volatility inherent in the AI market. Even positive developments, like Nvidia’s new deal, can be overshadowed by macro concerns.
Traders are now watching for signs of a stabilization in chip demand. The coming weeks will test whether the AI trade can regain its momentum or faces further correction.
