Samsung Electronics and SK Hynix stocks declined sharply on May 26, with Samsung trading at 232,000 won (down 8.66%) and SK Hynix at 1,620,000 won (down 10.79%) as of 9:45 AM, according to the Korea Exchange. The declines followed overnight weakness in US semiconductor stocks, where ASML dropped 5.80% and NVIDIA fell 4.99% amid concerns over Chinese competition in semiconductor manufacturing equipment. South Korean semiconductor stocks are closely tied to global technology market sentiment, particularly movements in major US chip manufacturers.
Samsung Electronics and SK Hynix Record Intraday Lows on May 26
Samsung Electronics opened trading at 238,500 won, down 6.10% from the previous close. By 9:45 AM, the stock had fallen further to 232,000 won, representing an 8.66% decline. SK Hynix opened at 1,662,000 won (down 8.48%) and dropped to 1,620,000 won (down 10.79%) at the same time. Both stocks reached their lowest levels of the month.
US Semiconductor Stocks Drop on Chinese DUV Equipment Development News
The New York stock market saw semiconductor stocks weaken overnight, with the NASDAQ Composite Index falling 0.18%. ASML declined 5.80% after reports emerged that China had begun developing deep ultraviolet (DUV) lithography equipment for semiconductor manufacturing. NVIDIA fell 4.99%, SanDisk dropped 11.02%, and Micron declined 2.25%. The Philadelphia Semiconductor Index fell 2.23%. SK Hynix's American Depositary Receipt (ADR) dropped 7.47%.
Chinese semiconductor company ChangXin Memory Technologies (CXMT) is scheduled to list on the Shanghai Stock Exchange. SK Hynix is scheduled to announce earnings on the 29th.
Eugene Investment Analyst Forecasts Market Concerns to Ease in Second Half
Son In-jun, a researcher at Eugene Investment & Securities, stated regarding Samsung Electronics: "Recent stock price adjustments stem from doubts about the long-term sustainability of earnings and room for further consensus upgrades. However, as second-half price negotiations, 2027 HBM prices, large-scale shareholder returns, and LTA details are confirmed in sequence, market concerns will ease."
Son added: "Earnings will increase, LTAs will prove sustainability, and shareholder returns will lead to increased per-share value."
Regarding SK Hynix, Son emphasized: "If dividend expansion, treasury stock purchases and cancellations, and other additional returns proceed, combined with detailed announcements about LTAs, it can give the market confidence in long-term earnings stability and lead to structural valuation re-rating."
FAQ
What caused Samsung Electronics and SK Hynix stocks to fall on May 26?
The stocks declined following overnight weakness in US semiconductor stocks, where ASML dropped 5.80% and NVIDIA fell 4.99% after reports that China began developing deep ultraviolet (DUV) lithography equipment for semiconductor manufacturing. The Philadelphia Semiconductor Index fell 2.23%.
How much did Samsung Electronics and SK Hynix stocks drop on May 26?
As of 9:45 AM on May 26, Samsung Electronics traded at 232,000 won (down 8.66%) and SK Hynix traded at 1,620,000 won (down 10.79%), according to the Korea Exchange. Both stocks reached their lowest levels of the month.
