SK Hynix, SoftBank shares plunge over 8% amid AI sell-off

Shares of South Korean chipmaker SK Hynix (HXSCL) dropped over 8% amid a regional sell-off in technology stocks in Asia, following a downturn in U.S. semiconductor shares. Concerns over artificial intelligence financing and increased competition in the sector have weighed on investor sentiment. Samsung Electronics shares also fell by 7.9%, with both companies touching their lowest intra-day levels since August. In Japan, SoftBank Group's shares experienced a drop of 8.03% as broader technology stocks, including Tokyo Electron and Advantest, also faced declines. Additionally, Micron Technology in the U.S. lost 3.9% amidst efforts from China's CXMT to develop a new chip architecture, which aims to enhance memory density by fitting more data into smaller spaces. Analysts argue that the sell-off is driven more by market jitters than by immediate competitive threats as CXMT has not surpassed Korean chipmakers in advanced technology like high-bandwidth memory (HBM). Despite CXMT's progress, experts maintain that Korean firms currently dominate this technology segment. Market watchers note that the recent sharp declines highlight heightened anxiety over AI sector valuations rather than a fundamental change in the market.