SK Hynix shares plunge 10% as chip selloff deepens on AI fatigue

Shares of South Korean chipmakers Samsung Electronics and SK Hynix fell sharply on July 28, 2026, as investor concerns over Nvidia's financing plans and rising competition from China weighed on the sector. The selloff deepened a broader downturn in semiconductor stocks, with SK Hynix plunging 10% in Seoul trading.

The declines hit major Korean technology firms, dragging down the benchmark Kospi index. SK Hynix, a key supplier of high-bandwidth memory chips used in artificial intelligence applications, saw its stock drop below its U.S. listing price, reflecting mounting unease about the sustainability of AI-driven demand.

The rout matters because it signals growing fatigue among investors who had bet heavily on the AI boom. Worries about Nvidia's ability to finance its expansion and the potential for Chinese competitors to erode market share have sparked a reassessment of valuations across the chip industry, which had soared on expectations of relentless growth.

On July 28, SK Hynix shares fell 10%, while Samsung Electronics also declined, though specific percentage drops for Samsung were not detailed in the source. The selloff was part of a broader semiconductor downturn that saw Korean chip stocks tumble, with SK Hynix trading below its U.S. listing price amid fears of China competition.

The slide follows months of volatility in the tech sector, where chipmakers have been caught between robust AI-related demand and geopolitical tensions. Reports of China's advancing semiconductor capabilities have added pressure, as investors fear that domestic Chinese firms could challenge the dominance of established players like Samsung and SK Hynix.

Analysts cited in the source suggest that the market will closely monitor Nvidia's next financing moves and any policy shifts from Beijing that could further impact the competitive landscape. The selloff may prompt a broader reevaluation of AI-related investments, with potential implications for global supply chains and tech stock valuations in the coming weeks.