A photo shared by broadcaster Mija after she purchased SK Hynix shares, showing the stock had plunged more than 13% from the previous trading session. [Photo: Mija's SNS]
A photo shared by broadcaster Mija after she purchased SK Hynix shares, showing the stock had plunged more than 13% from the previous trading session. [Photo: Mija's SNS]

"Once it went past minus 30%, I just stopped looking." — Broadcaster Mija, on her SK Hynix investment

"Holding on quietly is the best way to preserve your wealth." — Chey Tae-won, SK Group chairman

Retail investors in Samsung Electronics and SK Hynix are on edge after US semiconductor stocks tumbled during the holiday period, raising fears of a further selloff when domestic markets reopen Monday.

"I'm dreading Monday," investors said, with concern spreading widely online.

SK Hynix closed Thursday down 11% at 1.84 million won ($1,240), while Samsung Electronics fell 8.77% to 255,000 won. Both stocks have shed nearly 40% from their recent peaks, as a broad selloff in semiconductor shares on Wall Street spilled over into the Korean market.

In a report titled "Can Semiconductors Come Back: Checking the Conditions for a Rebound," published Sunday, Hana Securities said concerns that cyclical chipmakers would struggle to sustain high operating profit margins had already been substantially priced into recent share declines, adding that "the possibility of a rebound has increased given the excessive drop."

Japanese chipmaker Kioxia has fallen 52% from its peak, while US chipmaker Micron is down 30%.

[Photo: SK Hynix]
[Photo: SK Hynix]

SK Hynix's intraday decline reached as much as 43% from its peak — a level comparable to the sharp drop the company suffered in 2022, when its share price plunged ahead of a swing to a net loss. Lee Jae-man, an analyst at Hana Securities, said current earnings and industry conditions are "far healthier" than they were at that time, and that "the recent share price decline has preemptively priced in concerns about a slowdown in the memory chip market."

SK Group Chairman Chey also weighed in on SK Hynix's share price, saying memory chips "will keep trending upward over time because memory will always be needed."

Speaking Friday, Chey said he did not know where the stock would be next month, but advised investors to "hold on quietly rather than buying and selling — that is the best way to preserve your wealth."

He also said AI is "still like a four-year-old child," but that as it matures, memory chips will be indispensable, adding that "demand will inevitably grow exponentially."

Analysts said earnings results from major US technology companies due later this month will be the key variable determining which direction the stocks move, even as memory chip prices continue to rise and AI investment expands.


park@heraldcorp.com