AI investment fears spark panic selling in Samsung, SK hynix
The KOSPI is displayed at Hana Bank’s headquarters dealing room in Seoul, Friday morning. The KOSPI plunged more than 8 percent in early trading, triggering a circuit breaker. Yonhap
Fears that the artificial intelligence (AI) investment cycle may be nearing its peak triggered a wave of panic selling in semiconductor stocks, Friday, sending shares of Korea’s two chipmaking giants, Samsung Electronics and SK hynix, plunging nearly 10 percent.
As of 10:30 a.m., SK hynix had tumbled 10.28 percent, while Samsung Electronics had fallen 7.99 percent.
The benchmark KOSPI opened 2.24 percent lower at 5,263.26 before triggering a circuit breaker just three minutes into the session, which temporarily suspends trading for 20 minutes when market movements become too volatile and breach a certain threshold.
The index subsequently plunged more than 8 percent, falling below the 5,000 mark for the first time in 10 months since January.