Key facts
- Samsung Electronics and SK Hynix shares experienced significant declines.
- Concerns over AI infrastructure financing and competition from China are driving the selloff.
- Nvidia shares fell on reports of a potential financial backstop for an OpenAI data-center project.
- China is advancing its development of homegrown DUV lithography tools.
- South Korea's financial regulator is considering capping retail investments in leveraged ETFs tied to these stocks.
South Korean semiconductor stocks Samsung Electronics and SK Hynix experienced sharp declines, with shares dropping as much as 9.7% and 11.2% respectively. The selloff was driven by investor concerns over financing risks tied to AI infrastructure spending and increasing competition from Chinese firms, including memory-chip maker CXMT which had a strong stock debut. Nvidia shares also fell 5% amid reports it might provide a financial backstop for an OpenAI data-center project, raising questions about customer financing. Further unsettling the market, China is reportedly advancing its development of homegrown DUV lithography tools. South Korea's financial regulator is considering capping retail investments in leveraged exchange-traded funds tied to these stocks.