SK Hynix (SKHY) recovered from a sharp intraday decline to finish Tuesday's session little changed after heavy buying emerged following a broad selloff in AI-related semiconductor stocks. The rebound came after the memory chip maker had dropped as much as 9% early in trading, extending pressure from the previous session.
SK Hynix also helped lift sentiment across South Korea's technology sector. The benchmark KOSPI index reversed an early decline of more than 5% to close about 0.6% higher, while Samsung Electronics (SSNLF) rebounded from morning weakness and traded more than 4% above its intraday low. The recovery suggested investors were selectively returning to large-cap chip stocks after recent volatility.
The latest swings followed a roughly 9% overnight decline in SK Hynix's U.S.-listed American depositary receipts after the company's recent Nasdaq debut. The broader retreat in AI hardware stocks also weighed on memory and storage companies including Micron Technology (MU) and SanDisk (SNDK), reflecting investor concerns about elevated sector valuations.
Analysts said the sharp moves appear tied more to changing market dynamics than to weakening industry fundamentals, noting that increased volatility does not necessarily indicate the semiconductor cycle is nearing an end.