SK Hynix Sinks 4% as Seoul Selloff Revives AI Spending Fears; SanDisk Drops 3%, Micron Eases
A sharp selloff in Seoul is rattling memory chip investors and forcing a hard question about whether the AI spending cycle has finally hit its ceiling. What the next SK Hynix earnings report reveals could determine whether the recent rebound…
Memory chip stocks are giving back ground as a selloff in Seoul revives worries about how long the AI spending boom can last. SK Hynix (NASDAQ:SKHY) stock is trading lower this morning, down 4% at $137.03, leading memory names lower.
At the same time, SanDisk (NASDAQ:SNDK | SNDK Price Prediction) shares are down 3% to $1,336.86. Moreover, Micron Technology (NASDAQ:MU) stock is down 2% to $886.64, the smallest drop among the three.
Each of SK Hynix, SanDisk and Micron has ridden a powerful pricing cycle tied to AI data center buildouts. That run has left memory stocks sensitive to any sign that hyperscaler capital spending may be topping out, and the suppliers downstream of the chipmakers carry much the same exposure (we analyzed seven of them, from power to cooling, in a free report you can grab here).
Seoul Selloff Revives AI Spending Fears
South Korea’s Kospi led Asian markets lower overnight as concerns about the sustainability of AI spending weighed on chip stocks across the region. Seoul-listed SK Hynix shares fell sharply in that retreat, and the pressure carried over into U.S. trading.
That slide reverses a rebound in U.S.-listed SK Hynix shares, which rallied on Monday to end a long losing streak. Micron shares and other chip stocks had also sprung back after a bruising selloff in that session, so the latest drop hands back some of the relief.
Memory Fund Falls Harder Than Tech Benchmark
Pricing for the Roundhill Memory ETF (CBOE:DRAM) shows the weakness is concentrated in memory. The fund is down 3% to $46.75, with SK Hynix and Micron among its largest holdings. By comparison, the Invesco QQQ Trust (NASDAQ:QQQ) is down 0.5% to $715.16.
That gap marks the move as a memory-group selloff led from Seoul. Micron shares also rank among the Invesco QQQ Trust’s largest positions, which links the memory slide directly to the tech benchmark.
SK Hynix and Micron both make memory chips, including the high-bandwidth memory stacked beside AI processors in servers. SanDisk sells flash storage chips and drives built to hold data. Separately, a union at Micron’s Taoyuan operation in Taiwan plans a strike later this week over employee bonuses and profit sharing.
Weighing the AI Memory Story
SK Hynix’s bull case rests on its role as a critical supplier of high-bandwidth memory, which is essential to AI accelerators and high-performance computing systems. At last week’s Open Compute Project Global Summit, SK Hynix demonstrated its Memory Centric AI Rack System and detailed a memory module that lets multiple servers share a memory pool.
Cyclicality grounds the bear case. One observer posting on X as Financelot argued that “P/E is totally irrelevant for memory stocks” and that “Every single memory cycle has rolled over when gross margins peak.” That concern applies to SK Hynix, SanDisk and Micron shares alike, since all of them sell into the same AI expansion.
Retail sentiment remains firm. Reddit discussion of Micron stayed bullish in the latest period, though activity remained low. Micron’s most-upvoted recent Reddit thread carried a skeptical title: “if rich people appear on television suggesting you should buy stock, run. quickly.”
SK Hynix reports its results in Korean won. That reporting currency exposes holders of the U.S.-listed shares to exchange-rate swings.
SK Hynix Report Looms as the Next Test
Upcoming results from SK Hynix could show whether AI memory demand holds up against the spending worries. Hence, this may be a good time for watching and waiting instead of trading SKHY stock.
The conclusion is simple for prudent investors. Share positions in SK Hynix, SanDisk and Micron shares should remain moderate until SK Hynix’s next report arrives.
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David Moadel is financial writer specializing in stocks, ETFs, options, precious metals, and Bitcoin. David has written well over 1,000 articles for leading online publications, helping investors understand markets, income strategies, and risk.His work has appeared in The Motley Fool, InvestorPlace, U.S. News & World Report, TipRanks, ValueWalk, Benzinga, Market Realist, TalkMarkets, Finmasters, 24/7 Wall St., and others.With a master’s degree in education, David has taught at the elementary, high school, and college levels. That teaching background shapes his writing style: clear, educational, and practical. David has also built a loyal social-media audience by providing trustworthy financial content on YouTube, X/Twitter, and StockTwits.
