Samsung, SK hynix slide 10% as AI data center fears spread

Blue-chip semiconductor stocks plunged around 10 percent during intraday trading Friday, dragging the benchmark Kospi below the 5,000-point mark as investor sentiment was rattled by a sharp overnight sell-off in major technology stocks on Wall Street following the US midterm elections.

The benchmark Kospi opened at 5,263.63, down 2.2 percent from its previous close. Losses deepened, triggering a 20-minute trading halt just three minutes into the regular session. The first-stage circuit breaker kicks in when the index stays at least 8 percent below its previous close for one minute.

Prior to the circuit breaker activation, Samsung Electronics was trading at 181,400 won ($133.71), down 20,100 won, or 9.98 percent, from the previous session as of 9:14 a.m. SK hynix shares were also down 148,000 won, or 11.71 percent, at 1.116 million won at the same time.

In premarket trading, Samsung Electronics had fallen as much as 13 percent from its previous close, while SK hynix had dropped as much as 15.3 percent. Both stocks pared some of their losses after the market opened.

The losses followed an overnight selloff on Wall Street, where the Philadelphia Semiconductor Index plunged 12.25 percent and the Nasdaq Composite fell 5.52 percent amid concerns about delays in AI data center construction.

The Kospi had already fallen 5.28 percent on Thursday amid concerns that the Democrats' midterm sweep could bring tighter US regulation of AI data centers.

The tech-heavy Kosdaq opened 3.5 percent lower at 654.43 and was down more than 7 percent within the first half-hour of trading.