U.S. stocks rose, but Samsung Electronics and SK hynix plunge together amid AI regulation concerns [Stocks NOW]

[Financial News] Samsung Electronics and SK hynix are plunging in tandem early in the session. The decline in U.S. semiconductor stocks amid concerns that data-center regulations will be tightened following the U.S. midterm elections is believed to have dampened investor sentiment toward domestic semiconductor stocks as well.
According to the Korea Exchange (KRX), as of 9:28 a.m. on the 5th, Samsung Electronics was trading at 208,750 won, down 9,250 won (4.24%) from the previous trading day. SK hynix was down 97,000 won (6.95%) at 1,299,000 won. Samsung Electro-Mechanics (-9.96%) and SK Square (-6.12%) were also falling sharply.
Overnight, major U.S. stock indexes rose as uncertainty surrounding the midterm elections eased, but the PHLX Semiconductor Sector Index (SOX) fell 3.1%. Micron and SanDisk dropped 7.0% and 7.9%, respectively, while Nvidia (-3.2%) and CoreWeave (-9.9%) also traded lower.
Democrats' control of both chambers of Congress and their election victories in key data-center regions brought concerns into focus that permits for new data centers and their construction could be restricted. The concern is that if companies shoulder more of the costs of expanding the power grid and new investment is delayed, demand for suppliers of AI infrastructure, including memory, could also come under pressure.
Some analysts, however, say the impact on data-center investments already underway will be limited. Han Ji-young, an analyst at KIWOOM Securities Co., Ltd., said, "Given that the schedules for data-center investments already underway are unlikely to face major disruptions, the impact on existing supply contracts and any damage to earnings outlooks for AI infrastructure stocks will be limited."
[email protected] Bae Han-geul Reporter