By Heekyong Yang <\/p>\n
SEOUL, July 8 (Reuters) – Shares of South Korean chipmakers Samsung Electronics and SK Hynix rebounded on Wednesday after early losses, as investors bought the dip \u200cfollowing a sharp selloff fuelled by concerns over the sustainability of the AI-driven \u200cchip boom. <\/p>\n
Samsung rose as much as 1.4% and SK Hynix climbed as much as 5.8% in morning trade, after \u200bearlier falling as much as 4.4% and 5%, respectively, as they initially tracked an overnight decline in U.S. semiconductor stocks. <\/p>\n
Analysts said the earnings season is only just beginning and expectations for strong results from chipmakers remain intact. They added that memory chip supply is still expected to remain tight \u200cthrough the third quarter, underpinning bargain \u2060buying after Tuesday’s selloff. <\/p>\n
Optimism surrounding SK Hynix’s planned U.S. listing also supported investor sentiment. <\/p>\n
Even so, analysts cautioned that while memory pricing is expected to \u2060remain favourable for suppliers in the near term, price increases in the second half of 2026 are likely to moderate from the first half because of a higher comparison base. <\/p>\n
Park Yuak, an analyst at \u200bKiwoom \u200bSecurities, cut his target price for Samsung by about \u200b9% to 390,000 won ($257.15), saying rising \u200cprices for components such as CPUs and package substrates were pushing up PC and smartphone prices, making customers more cautious about additional memory purchases. <\/p>\n
Samsung shares last traded at 290,000 won. <\/p>\n
JPMorgan said in a note that memory prices would remain the key driver of earnings in the second half, as supply continued to lag demand despite growing customer resistance to higher costs. The bank \u200cadded that NAND conventional chip pricing could outperform investor \u200bexpectations, supported by strong demand from U.S. hyperscalers. <\/p>\n
The rebound \u200bfollowed a broad overnight selloff in \u200bU.S. semiconductor shares, with Intel, Micron and AMD falling 9.7%, 4.7% and 6.5%, \u200crespectively. The Philadelphia Semiconductor Index also lost \u200b4.7% as investors questioned \u200bwhether AI-related spending could be sustained. <\/p>\n
The selling was triggered by Samsung’s second-quarter preliminary earnings on Tuesday, after the chipmaker’s estimate of a 19-fold jump in quarterly operating profit \u200bfailed to satisfy investors’ lofty \u200cexpectations despite robust demand for AI memory chips. <\/p>\n
Samsung’s shares tumbled, fuelling a broader retreat \u200bfrom AI-related investments that later spread to Wall Street. <\/p>\n
($1 = 1,516.6000 won) <\/p>\n
(Reporting by Heekyong \u200bYang; Editing by Tom Hogue and Sonali Paul) <\/p>\n","protected":false},"excerpt":{"rendered":"By Heekyong Yang SEOUL, July 8 (Reuters) – Shares of South Korean chipmakers Samsung Electronics and SK Hynix…\n","protected":false},"author":2,"featured_media":538504,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,61,60,6375,141695,81767,80],"class_list":["post-538503","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ie","tag-ireland","tag-samsung-electronics","tag-selloff","tag-sk-hynix","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/538503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=538503"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/538503\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/538504"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=538503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=538503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=538503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}