SK Hynix shares tumbled more than 12% in Thursday trading, leading a sharp sell-off across Asian technology stocks as investors liquidated positions in artificial intelligence hardware.
The memory chipmaker's steep decline was the focal point of a broader regional retreat, with the South Korean Kospi index falling over 7% to trade below the 7,000 mark.
This level marks the index's lowest point since early May, signaling a significant shift in sentiment for the region's equity markets.
The selling pressure appears driven by risk management and profit-taking rather than a fundamental deterioration in the AI sector.
Structural demand for AI infrastructure continues to outstrip supply, and industry expectations remain for a recovery in SK Hynix's fortunes over the next six to twelve months.
However, the magnitude of the drop suggests that traders are prioritizing near-term portfolio rebalancing over long-term growth narratives.