Viewpoint: If Even Apple Cannot Absorb Rising Costs, Market Questions the Sustainability of Memory Chip Profit Margins

Odaily Planet Daily News: South Korea's stock market experienced a significant decline, with chip stocks facing another sell-off, highlighting the market's high sensitivity to fluctuations in global AI investment sentiment. The South Korean KOSPI index fell over 8% during trading on Friday, wiping out all gains from the previous trading day and triggering a market circuit breaker. Shares of Samsung Electronics and SK Hynix both fell by about 9%. Foreign investors sold 2.5 trillion won (approximately $1.6 billion) worth of KOSPI stocks in early morning trading.

This sharp decline marks a rapid reversal from Thursday's rally, which had been boosted by Micron Technology's optimistic earnings outlook and news of SK Hynix's plan to list in the U.S., temporarily lifting optimism about the sustainability of the AI investment boom. However, market sentiment quickly deteriorated as investors digested news such as Apple raising prices due to memory chip shortages and the possibility that OpenAI's IPO might be delayed until next year.

Fabien Yip, Market Analyst at IG International, stated: "If Apple, one of the world's largest component buyers, cannot absorb rising costs, it indeed raises questions about demand elasticity and the sustainability of memory chip profit margins." He added that OpenAI's delayed IPO also reflects how tech stocks are vulnerable to fluctuations in retail investor sentiment. (Jin Shi)