Shares in AI-linked chip companies across Asia tumbled again after SK Hynix's results disappointed investors, dragging South Korea's Kospi index to its lowest level since early April.
Key facts
- South Korean chipmaker SK Hynix reported results that undershot investor expectations.
- Seoul's Kospi index fell by as much as 12.6% on Wednesday.
- The drop followed a near 11% slump the previous day.
- The Kospi reached its lowest level since early April.
- The Kospi index is dominated by semiconductor manufacturers.
Shares in companies linked to artificial intelligence fell further this week after disappointing results from the South Korean chipmaker SK Hynix, according to the Guardian. The results sent South Korea’s stock market tumbling for a second consecutive day.
Seoul’s Kospi index, which is dominated by semiconductor manufacturers, slid by as much as 12.6% at one point on Wednesday. The fall came after a near 11% slump the previous day, the Guardian reported.
The consecutive declines pushed the index to its lowest level since early April, underlining how heavily South Korea’s benchmark relies on chip-related stocks.
The trigger for the latest sell-off was SK Hynix’s earnings, which failed to meet investors’ expectations, the Guardian reported.
The source does not detail the specific figures behind SK Hynix’s results or the outlook offered by the company.
Why it matters
The Kospi is dominated by semiconductor manufacturers, so a sharp reversal in chip stocks weighs heavily on South Korea's benchmark index. The sell-off followed disappointing results from SK Hynix, a company closely tied to the AI-driven demand for memory chips.
Frequently asked questions
Why did Asian chip stocks fall?
According to the Guardian, the sell-off followed disappointing results from South Korean chipmaker SK Hynix, which undershot investors' expectations.
How far did South Korea's Kospi index fall?
The Kospi slid by as much as 12.6% on Wednesday, following a near 11% slump the previous day, reaching its lowest level since early April.
Why does SK Hynix's performance affect the whole market?
The Kospi index is dominated by semiconductor manufacturers, so weaker results from a major chip firm like SK Hynix can drag the broader market down.