Samsung Electronics and SK hynix shares were down around 3% in early trading on the 8th. With uncertainty over the Middle East war growing, the move is seen as reflecting a pullback in U.S. semiconductor stocks overnight.
As of 9:29 a.m., Samsung Electronics was trading at 263,000 won, down 8,500 won (3.13%) from the previous session on the Korea Exchange. At the same time, SK hynix was also trading at 1,615,000 won, down 2.36% from the previous session.
On the 7th, the Dow Jones Industrial Average fell 0.63% to close at 49,596.97, while the S&P 500 (-0.38%) and the Nasdaq (-0.13%) also declined.
U.K. chip designer Arm Holdings fell 10.1% on concerns about the next-generation artificial intelligence (AI) chip supply chain, while Intel and AMD each fell 3%. The Philadelphia Semiconductor Index also dropped 2.7%.
Geopolitical risks are also flaring up again. Hopes had risen that the United States and Iran, at war, would sign a memorandum of understanding (MOU), but just a day after talks were mentioned, U.S. and Iranian forces exchanged fire in the Strait of Hormuz.
Han Ji-young, a Kiwoom Securities researcher, said, "With weakness in the Philadelphia Semiconductor Index, profit-taking pressure is likely to build on domestic AI value chain stocks, leading to a breather," but added, "Attention should be paid to the continued upward revisions to this year's operating profit forecasts for KOSPI-listed companies, led by semiconductors."