Why Is DRAM Falling Today? Samsung, SK Hynix Are Reportedly Preparing $1.3 Trillion Investment Plan

• Samsung and SK Hynix are expected to announce investments of up to $1.3 trillion in their operations, according to local media reports.
• The plans are expected to be announced during a government briefing at 2 pm local time on Monday, according to a Korea Economic Daily report.
• DRAM edged lower in overnight trading, extending Friday’s decline.

The Roundhill Memory ETF (DRAM) slipped 0.4% in overnight trading ahead of Monday, mirroring declines in Samsung Electronics and SK Hynix after reports said the South Korean memory giants are preparing to announce major investment plans.

Samsung and SK Hynix might announce investment plans of up to 2,000 trillion won ($1.3 trillion) in 10 years, as early as Monday, the Korea Economic Daily reported.

The plans are expected to be announced during a government briefing at 2 pm local time on Monday, the report said. Samsung is expected to announce an investment of $646 billion in semiconductor fabs, AI data centers, advanced packaging, batteries, and displays, another report said.

Samsung shares dropped 4% in Seoul by Monday afternoon local time, while SK Hynix shares dipped nearly 2%.

Samsung, SK Hynix Attract US Investor Attention

Samsung and SK Hynix have become key beneficiaries of the AI boom, as surging demand for high-bandwidth memory (HBM) chips continues to outstrip supply amid aggressive AI infrastructure spending by cloud companies and technology firms.

SK Hynix, which is preparing to list its shares on Nasdaq next month, is the dominant supplier of advanced HBM chips to Nvidia. Samsung, SK Hynix, and U.S. memory giant Micron are the top three holdings of DRAM.

While the business is booming, the incredible size and influence of Samsung and SK Hynix in the South Korean market have emerged as a cause of concern. 

Last week, regulators stepped in twice to pause trading on the Kospi and steady nerves after stocks dropped sharply. 

In the U.S., investors sold chip stocks and booked profits on Friday, after fresh record-hitting rallies in major names following incredible results from Micron. U.S. memory stocks were up again in the overnight session ahead of Monday.

Retail View On DRAM

On Stocktwits, the retail sentiment for DRAM rose over the weekend to ‘extremely bullish’ as of early Monday, while message volume for the ETF more than doubled in the past week.

$DRAM has been ridiculously hard to hold, $MU is down .5% and this almost 3%… cmon let’s go,” said a trader, while another said the dip is a buying opportunity. DRAM has climbed about 145% since its launch on April 2.

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