Chip Stocks and the AI Trade: Nvidia to SK hynix — 2026-09-17
AI chip stocks faced significant volatility this week as CEOs of Anthropic and OpenAI called for slower development, triggering a sharp selloff in memory and semiconductor shares. While US indices dipped, South Korean giants Samsung and SK Hynix showed resilience against the broader rout, though foreign investors executed massive net sell-offs in Korean chipmakers. Meanwhile, TSMC’s advanced packaging capacity remains a critical bottleneck, with demand spilling over to non-TSMC partners like Intel and ASE.
Chip Stocks and the AI Trade: Nvidia to SK hynix — 2026-09-17
Top developments
Anthropic and OpenAI CEOs Spark AI Infrastructure Selloff
On September 14, memory stocks led a broader market decline after Anthropic and OpenAI executives urged a slowdown in advanced model development. This commentary prompted investors to reassess the near-term outlook for AI capital expenditures, causing Micron and SanDisk to sink 6% and SK Hynix to drop 7% in early trading. The reaction highlighted the fragility of the AI-infrastructure trade, where sentiment shifts can rapidly devalue assets tied to speculative capex growth.
Samsung and SK Hynix Defy US Chip Rout
Despite a 6% drop in US chip stocks, Samsung Electronics and SK Hynix displayed relative strength on September 15, outperforming their American peers. Analysts suggest that Korean investors are differentiating between general sector volatility and specific company fundamentals, particularly regarding high-bandwidth memory (HBM) supply contracts. This divergence suggests that while global sentiment is cautious, the specific demand outlook for Korean memory makers remains supported by long-term agreements.
Foreign Investors Dump ₩10 Trillion in Korean Chip Stocks
According to Chosun Ilbo, foreign investors have net sold over 10 trillion won ($7.5 billion) worth of Samsung Electronics and SK Hynix shares recently, despite optimistic reports from global investment banks like BlackRock and Goldman Sachs. The selling is attributed not to industrial weakness but to macroeconomic factors such as rising interest rates and liquidity concerns, alongside corporate share buyback programs. This massive outflow contrasts with retail investors' attempts to stabilize prices, creating a volatile trading environment for the KOSPI semiconductor index.
TSMC’s CoWoS Capacity Bottleneck Spills Over to Competitors
United Daily News reports that TSMC’s CoWoS (Chip-on-Wafer-on-Substrate) advanced packaging capacity is still unable to meet surging AI demand, even with aggressive expansion efforts. This supply shortage has forced customers to look beyond TSMC, driving rapid growth for non-TSMC partners such as Intel, ASE Holdings, Amkor, and silicon interposer suppliers like UMC and World Advanced Semiconductor. The spillover effect is benefiting the broader semiconductor ecosystem but highlights a persistent structural bottleneck in the AI hardware supply chain.
Local view
South Korea: Local media highlights a stark disconnect between institutional sentiment and market action. Herald Corp notes that it is rare for individuals, foreigners, and institutions to all be net sellers of SK Hynix simultaneously, with individuals selling approximately 11.5 trillion won worth of shares over the past month. Bloomingbit reports that securities firms are advising against additional buying, citing limited upside potential due to constrained memory price increases.
Taiwan: Taiwan TechNews and Vocus analysts point to advanced packaging as the new battleground for AI competitiveness. With TSMC holding ~73% foundry market share, the focus has shifted to "advanced packaging" capabilities like SoIC and CoWoS. Morgan Stanley’s recent report, cited by local tech blogs, emphasizes preferring companies that benefit from capital expenditure increases and market share gains in China's advanced packaging sector, warning of overcapacity risks if AI demand slows.
Context & numbers
- Foreign Net Selling: Foreign investors net sold over 10 trillion won of Samsung and SK Hynix shares recently, despite positive analyst notes from major global banks.
- Price Targets: BNK Investment Securities lowered its target price for Samsung Electronics to 270,000 won while maintaining SK Hynix at 1.48 million won, citing limited upside. Other brokerages have a wide divergence in Samsung targets, ranging from 270,000 to 670,000 won.
- Market Reaction: On September 14, following the "slow down" comments from AI leaders, Micron fell 6%, SanDisk fell 6%, and SK Hynix dropped 7%.
- TSMC Share: TSMC continues to dominate with approximately 73% of the global foundry market share in Q2 2026, with its primary constraint now being packaging rather than wafer production.
On the radar
- Advantest Earnings: Advantest is scheduled to announce its Q2 FY2026 results on October 28 at 15:30 JST. Investors will watch for guidance on HBM testing equipment demand.
- Tokyo Electron Stock Split: Tokyo Electron will execute a 1-for-5 stock split effective October 1, 2026. This move is expected to increase retail liquidity and could influence short-term trading dynamics for the semiconductor equipment sector.
- SK hynix US Production Talks: Reports indicate SK hynix is discussing direct memory semiconductor production in the US with Intel to mitigate tariff risks, though this would increase operational costs.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
Powered by
