Samsung Electronics and SK Hynix shares tumbled 9.1% and 15.0% respectively, mirroring a broader cooling in global sentiment toward artificial intelligence spending. The sell-off followed a steep decline in U.S. tech stocks and reports that Meta intends to monetize excess computing power, sparking fears over the sustainability of current AI infrastructure demand.

Despite the market turbulence, both companies reaffirmed their long-term commitments to the South Korean chip supply chain. SK Hynix announced a 100 trillion won investment—roughly $64.5 billion—for new facilities, while Samsung Group unveiled follow-up projects valued at 140 trillion won. Analysts suggest the extreme concentration of the index remains the primary risk; according to Christy Tan of the Franklin Templeton Institute, the market’s performance has become dangerously narrow, with gains in May largely decoupled from the broader economy once the two chip giants are excluded.