Nasdaq Falls as Nvidia Stumbles, 3 Reasons Why SK Hynix Hit a Record High
While the Nasdaq fell 1.1% on AI semiconductor peak concerns, the KOSPI broke 8,860 and SK Hynix hit a record high due to attractive valuations.
The Nasdaq index closed down 1.1% as profit-taking in major tech stocks weighed heavily, driven by growing concerns over an AI semiconductor peak. In contrast, South Korea's KOSPI broke through the 8,860 mark to set a new all-time high, fueled by strong bargain hunting centered on large-cap semiconductor stocks.
Why the Decoupling Between US and Korean Semiconductor Markets?
Recently in the US stock market, concerns over a short-term peak and the potential bursting of the AI bubble have rapidly spread among core AI semiconductor stocks, including Nvidia. This has led to accumulated investor fatigue and massive profit-taking, dragging down the Nasdaq index.
Conversely, the domestic market displayed a completely different trend. Despite the bearish sentiment surrounding US tech stocks, foreign and institutional investors focused on the relative valuation attractiveness of the domestic semiconductor market. SK Hynix, in particular, surged over 5.8% to hit a new all-time high, reflecting strong expectations for a semiconductor boom in the second half of the year. Samsung Electronics also recorded a 1% increase, supported by robust institutional buying despite net selling by foreign investors.
This phenomenon can be interpreted as a rotational trade, where global capital realizes profits from US tech stocks that have surged in the short term and moves to relatively undervalued domestic semiconductor leaders with solid fundamentals.
Frequently Asked Questions (FAQ)
Q. Why did US tech stocks like Nvidia suddenly fall?
The biggest reason is the accumulation of short-term fatigue following a relentless surge in stock prices driven by the artificial intelligence (AI) boom throughout the first half of the year. As investors sought to manage risk and take profits ahead of uncertainties in the second half, selling pressure significantly expanded during intraday trading.
Q. What is the outlook for domestic semiconductor stocks in the second half of the year?
Experts analyze that as global investments in AI infrastructure are still ongoing, the demand for high-value-added semiconductors like High Bandwidth Memory (HBM) will continue. Therefore, despite short-term volatility in global tech stocks, the downside rigidity of major domestic semiconductor companies with clear earnings visibility is expected to remain strong.