Samsung, SK Hynix, Micron Drop 14-17% in First Two Days of July

According to Asia Economy, Samsung Electronics and SK Hynix fell 14.4% and 17.5% respectively in the first two days of July, with Micron also declining 15.5% in the same period. The sharp selloff reversed gains driven by expectations of a memory semiconductor super-cycle amid artificial intelligence investment expansion.

The decline followed Micron's June 24 earnings report, which beat market expectations with record-high gross margins of 85% and operating margins of 81%. However, investors grew concerned that rapidly rising memory chip prices could dampen demand, a worry reinforced by subsequent price increases for Apple iPads, MacBooks, and Microsoft Xbox devices. Apple has also begun exploring purchases from Chinese chipmakers CXMT and YMTC to reduce exposure to elevated memory prices, raising concerns about potential competition in the traditionally three-player dominated market.