AI · 2026-10-18
Samsung Electronics and SK hynix Shares Sink Sharply: Will Chinese Memory and Musk’s Remarks Be the Next Variable?
Samsung Electronics and SK hynix fell 17.8% and 24.3%, respectively, over one week. Against a backdrop of foreign selling and a stronger risk-off mood in the market, the expansion of China’s CXMT and Elon Musk’s comments about Chinese memory have also emerged as points of caution.
Samsung Electronics and SK hynix shares fell sharply over the course of a week, adding to growing concerns about the semiconductor industry outlook. Expectations that memory demand will continue to rise amid the spread of artificial intelligence (AI) remain intact, but as growth from Chinese companies and global market unease overlap, investors appear to be taking a more cautious stance.
Weekly declines reach the largest since the financial crisis
According to a report by Maeil Newspaper, Samsung Electronics shares fell 17.8% from October 12 to 16, while SK hynix dropped 24.3%. For both stocks, this marked the steepest weekly decline since the 2008 global financial crisis. Foreign investors net sold 11.2068 trillion won worth of stocks on the KOSPI during the same period, and sales of Samsung Electronics and SK hynix accounted for 78.8% of that total.
That said, this decline does not necessarily mean an immediate deterioration in the two companies’ earnings. Views from securities firms, as reported in the article, are mixed. Some analysts argue that, given expanded long-term supply contracts and a shortage of memory supply, stock prices have fallen too far relative to corporate value. Others say that as long as an unstable economic backdrop and investors’ risk aversion persist, a rebound could be delayed.
The rise of Chinese memory makers and Musk’s remarks
One variable drawing close attention from the market is Chinese memory company ChangXin Memory Technologies, or CXMT. According to the report, CXMT expects sales and net profit in the first three quarters of this year to increase significantly. Industry watchers are also paying attention to the possibility that its production capacity will expand. However, a production forecast alone cannot determine actual supply volumes or changes in market prices. That is because utilization rates at new facilities, yields, and the evolution of AI memory demand will all play a role.
Elon Musk posted on X that China would produce large volumes of memory semiconductors by 2028. His comments on memory shortages and prices also drew attention, but they reflect market concerns rather than providing a basis for confirming how much Chinese-made memory will be supplied at a specific point in time. The report suggested that bargaining power over memory prices and the possibility of Chinese products serving as alternatives could affect investor sentiment.
What to watch next: actual shifts in supply and demand
There are now two forces at work at once: expectations that AI-driven memory demand will continue, and concerns that production expansion by companies including those in China could intensify supply competition. For that reason, the recent share-price declines should not be explained by a single cause; rather, they should be seen as a trend shaped by foreign selling, macroeconomic uncertainty, and a mix of industry optimism and competitive pressure. How China’s production expansion will affect actual market supply and prices will depend on future capacity growth and demand trends, which will need to be watched closely.
Weekly declines reach the largest since the financial crisis
According to a report by Maeil Newspaper, Samsung Electronics shares fell 17.8% from October 12 to 16, while SK hynix dropped 24.3%. For both stocks, this marked the steepest weekly decline since the 2008 global financial crisis. Foreign investors net sold 11.2068 trillion won worth of stocks on the KOSPI during the same period, and sales of Samsung Electronics and SK hynix accounted for 78.8% of that total.
That said, this decline does not necessarily mean an immediate deterioration in the two companies’ earnings. Views from securities firms, as reported in the article, are mixed. Some analysts argue that, given expanded long-term supply contracts and a shortage of memory supply, stock prices have fallen too far relative to corporate value. Others say that as long as an unstable economic backdrop and investors’ risk aversion persist, a rebound could be delayed.
The rise of Chinese memory makers and Musk’s remarks
One variable drawing close attention from the market is Chinese memory company ChangXin Memory Technologies, or CXMT. According to the report, CXMT expects sales and net profit in the first three quarters of this year to increase significantly. Industry watchers are also paying attention to the possibility that its production capacity will expand. However, a production forecast alone cannot determine actual supply volumes or changes in market prices. That is because utilization rates at new facilities, yields, and the evolution of AI memory demand will all play a role.
Elon Musk posted on X that China would produce large volumes of memory semiconductors by 2028. His comments on memory shortages and prices also drew attention, but they reflect market concerns rather than providing a basis for confirming how much Chinese-made memory will be supplied at a specific point in time. The report suggested that bargaining power over memory prices and the possibility of Chinese products serving as alternatives could affect investor sentiment.
What to watch next: actual shifts in supply and demand
There are now two forces at work at once: expectations that AI-driven memory demand will continue, and concerns that production expansion by companies including those in China could intensify supply competition. For that reason, the recent share-price declines should not be explained by a single cause; rather, they should be seen as a trend shaped by foreign selling, macroeconomic uncertainty, and a mix of industry optimism and competitive pressure. How China’s production expansion will affect actual market supply and prices will depend on future capacity growth and demand trends, which will need to be watched closely.
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#Samsung Electronics stock drop#SK hynix share price decline#Korean semiconductor stocks#CXMT memory expansion#Elon Musk China memory#foreign investors net selling KOSPI#AI memory demand