Samsung Electronics and SK Hynix Plunge on Meta Fears: A Correction or Peak-Out?

Although Korea's semiconductor exports posted a strong performance last month, surpassing $40 billion for the first time ever, Samsung Electronics and SK Hynix shares plunged sharply on the 2nd. In the market, concerns spread that the semiconductor industry had passed its peak, as the possibility of reduced investment by major cloud companies such as Meta coincided with talk of an AI bubble. Samsung Electronics fell 9.06% that day, while SK Hynix dropped 14.57%. On the other hand, according to the Ministry of Trade, Industry and Energy, semiconductor exports in June reached a record high of $44.82 billion, up 199.5% from the same month last year. Demand for DRAM and HBM remained strong, but some said the rise could simply be a natural correction following recent increases in memory prices. In the securities industry, there were also views that Meta's move into the cloud business merely acted as a trigger for profittaking, and that it is still too early to say the underlying fundamentals of the domestic semiconductor industry have collapsed. Investor sentiment is expected to be influenced this month by Samsung Electronics' and SK Hynix's earnings announcements, the earnings results of U.S. big tech companies, and foreign investor flows.