Shares of SK Hynix came under renewed selling pressure in Tuesday’s trade, October 20, as sentiment toward the artificial intelligence trade remained jittery ahead of key earnings reports this week.
After a brief recovery in the previous session, the shares resumed their losing streak, crashing 4.23% in trade to their lowest level since April. The decline also dragged the Kospi Index down 4%, given SK Hynix’s significant weight in the index.
Adding to signs of pressure on the AI trade, data center infrastructure company Elice Inc. plunged as much as 33% in its trading debut in Seoul.
Meanwhile, SoftBank Group Corp.’s credit risk, as measured by its credit-default swaps, has risen to its highest level in nearly four years as concerns grow over AI-related funding and a potential large acquisition.
Chip stocks have been fluctuating between gains and losses lately but have largely tilted downward amid rising Chinese competition, tight NAND supply, expectations of higher interest rates, and concerns about the sustainability of AI infrastructure spending.