Broadcom-Linked AI Selloff Hits Samsung, SK Hynix Stocks In Korea: DRAM Eyes Second Day In Red

• SK Hynix, Samsung and Micron are the three biggest holdings of DRAM.
• Broadcom’s AI forecasts, which some considered soft, triggered a sell-off in AI-linked stocks, chiefly semiconductor players.
• Stocktwits sentiment for DRAM remained ‘bearish’ early Friday.

SK Hynix and Samsung shares fell sharply in Seoul trading on Friday, after a softer-than-expected outlook from U.S. chip giant Broadcom triggered a global selloff in semiconductor stocks.

SK Hynix stock dropped over 8%, while Samsung shares declined over 5% amid profit-taking and a sentiment reset following their red-hot rallies in recent months. 

U.S. memory stocks such as Micron and SanDisk declined on Thursday and extended losses in the overnight session. The Roundhill Memory ETF (DRAM) declined over 5% in the overnight session and if the move holds, it would be the fund’s second consecutive close in the red.

Retail Sentiment For DRAM Remains Bearish

SK Hynix, Samsung, and Micron are the three biggest DRAM manufacturers. Consequently, the retail sentiment for the fund on Stocktwits remained in the ‘bearish’ zone. Still, some traders saw it as a buying opportunity.

“$DRAM this is probably a once in a decade play and people are being emotional on here acting like 10% up or down matters. Think long or stay poor,” said a trader. Another wrote: “$DRAM Stick a fork in it. Bag holder land.”

DRAM has gained 125% since it launched on April 2, a testament of the high interest in the memory chip sector.

Broadcom reported its second-quarter fiscal results on Wednesday evening, beating on both revenue and profit, though its guidance left investors wanting more. 

The custom AI chipmaker projected $16 billion in AI chip revenue in the third quarter, much below estimates of $17.2 billion, and kept its fiscal year 2027 outlook unchanged at $100 billion. AVGO stock tumbled 12.6% on Thursday, marking its steepest single-day decline since January 2025.

Recent Catalysts For SK Hynix, Samsung

SK Hynix and Samsung companies have been major beneficiaries of the AI boom through high-bandwidth memory (HBM) chips used in Nvidia’s AI accelerators. When investors reduce exposure to AI infrastructure plays, Samsung and SK Hynix are often among the first stocks sold. 

Samsung shares have soared in recent weeks after it  clinched ‌an 11th-hour deal with its South Korean union to avert a major strike on May 21. 

Separately, Reuters reported on Thursday, that SK Hynix told ​investors it received "tremendously positive" feedback on its proposed U.S. listing. The company made a confidential filing to list shares in the U.S. this year, which a Reuters source said in March ​could raise as much as $14 billion.

Nvidia’s Jensen Huang Arrives In Seoul

Nvidia CEO Jensen Huang on Friday endorsed the two companies, as well as Micron, as indispensable to Nvidia's AI hardware, which is in high demand from cloud customers.

Huang, who arrived in Seoul for a multiday visit on Friday, told reporters that Nvidia certified SK Hynix, Samsung, and Micron to supply HBM4 for its accelerators. 

“All three vendors have been qualified,” Huang said. “All three vendors are in production, and they’re all racing to support Vera Rubin.” Nvidia’s next generation Vera Rubin system is in “full production” and set for deliveries in the third quarter of this year, the company has previously said.

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