Samsung Electronics, SK hynix fall in the 3% range in premarket on concerns over China’s memory-chip catch-up [STOCKS NOW]

[Financial News] Samsung Electronics and SK hynix are both trading down around 4% in the premarket. The decline in U.S. semiconductor stocks amid concerns that Chinese memory-chip makers are catching up technologically is seen as having dampened investor sentiment.
As of 8:39 a.m. on the 13th, Samsung Electronics was trading at 241,000 won, down 9,500 won (3.79%) from the previous trading day. SK hynix was down 64,000 won (3.99%) at 1,541,000 won.
Overnight on Wall Street, Micron fell 3.88% and SanDisk dropped 6.0%. The Philadelphia Semiconductor Index also fell 2.67%. Concerns over increased memory supply and weakening profitability for established players came to the fore after China’s CMXT unveiled plans to launch next-generation DDR5 for servers.
Analysts say it remains to be seen whether CMXT’s plans will translate into actual mass-production results. Since yields, performance and customer qualification have yet to be verified, they say it is too early to worry about a supply glut.
Han Ji-young, a researcher at Kiwoom Securities, said, “It is not appropriate to factor an oversupply of next-generation memory from China into stock prices at this point,” adding, “The key is whether earnings from the AI value chain, including semiconductor and big tech companies, scheduled for this month will provide visibility into profits.”   

[email protected] Bae Han-geul Reporter