Shares of SK hynix declined 0.36% on Friday, closing at 839,000 won. The move coincided with a broader retreat in South Korean equities, as the benchmark KOSPI index dropped 1.4% for the day and 2.6% for the week, snapping a six-week advance.
Tech Sentiment and the AI Memory Trade
The recent market pullback highlights shifting sentiment in the technology sector. While the KOSPI remains up 20.8% year-to-date, and SK hynix has surged 29%, investors are becoming more selective. The focus is narrowing to companies like memory chipmakers that are direct beneficiaries of the data-center and artificial intelligence infrastructure boom.
A critical dynamic is the tightening supply of DRAM, a key component for devices from smartphones to servers. Surging demand from AI projects is absorbing available capacity, driving prices higher. This creates a dilemma for device manufacturers: absorb the rising costs or pass them on to consumers. Apple CEO Tim Cook has already warned of significant upcoming increases in memory chip prices.
Macro Backdrop Remains Supportive
Despite near-term volatility, the fundamental outlook for semiconductors is robust. The Semiconductor Industry Association forecasts global chip sales will reach $1 trillion this year, following $791.7 billion in 2025. Within that, memory chip sales jumped 34.8% to $223.1 billion last year, underscoring the segment's strength.
For SK hynix, high-bandwidth memory (HBM)—a specialized, stacked DRAM designed for AI processors—sits at the most profitable edge of this cycle. However, risks remain. The stock's trajectory is sensitive to any pullback in data-center spending from major tech firms or consumer resistance to higher device prices.
Traders will be watching for signals when South Korean markets reopen on Monday. Key factors include the direction of global tech stocks and further updates on memory supply chains. SK hynix also approaches its ex-dividend date on February 26, with an indicated cash payout of 1,875 won per share.
