U.S. chip stocks falter, dragging Samsung Electronics and SK hynix down too... shares plunge 5%-6% in premarket trading [Stock NOW]

[The Financial News] Samsung Electronics and SK hynix are both plunging in premarket trading. Continued weakness in U.S. chip stocks appears to be intensifying selling pressure on large-cap semiconductor stocks in Korea.
As of 8:43 a.m. on the 19th, Samsung Electronics was trading at 203,000 won on the Nextrade premarket, down 12,500 won (5.80%) from the previous trading day. SK hynix was down 83,000 won (6.53%) at 1,189,000 won. Samsung Electro-Mechanics was also trading at 1,083,000 won, down 8.84%.
On the 16th (local time), the Philadelphia Semiconductor Index (SOX) fell 3.8%, extending its losses to an eighth consecutive trading day. It was the longest losing streak since October 2008, and the index fell 16% over that period. All 30 components of the index fell that day.
The financing burden faced by companies investing in artificial intelligence (AI) is cited as a reason for weakness in semiconductor stocks. Analysts say concerns are spreading to chip stocks that capital expenditures could be delayed or scaled back as worries grow about the ability of CoreWeave and other companies that rely on borrowing to build data centers to repay their debt.
Kim Jae-seung, a researcher at Hyundai Motor Securities, said, “The increased credit risk of data center companies could translate into reduced AI investment, which is a factor behind weakness in semiconductor stocks,” adding, “As global investors reduce their exposure to AI, selling pressure from foreign investors may continue.”  

[email protected] Bae Han-geul Reporter