It’s no secret that investors are getting nervous about AI, leaving chipmakers’ shares struggling.
Wednesday brought further evidence with South Korea’s Kospi (Korea Composite Stock Price Index) falling another 6%. The stock index is down over 32% in just the last month.
The significant decline follows poor performance from two of the Kospi Index’s biggest stocks: SK Hynix Inc. (KSE: 000660.KS) and Samsung Electronics Co., Ltd. (KSE: 005930.KS).
The two chip manufacturers have struggled recently as over-investment becomes a growing fear in the AI world.
SK Hynix closed over 9.6% down after falling more than 19% during the day. Its shares are down more than 45% in the last month.
Samsung had fallen more than 5.2% at close and is down over 35% in a month.
Shares of SK Hynix also took a hit after the company failed to meet analysts’ expectations. On Wednesday, the company announced its second-quarter results, including 79.32 trillion won ($54.64 billion) in revenue.
While it was a 51% jump from last quarter, it fell short of predictions for $84 trillion won ($57.86 billion), according to consensus estimates cited by CNBC. Operating profit also came in lower than expected, with a reported 60.54 trillion won ($41.70 billion) compared to 64 trillion won ($44.10 billion).
Outside of South Korea, chip manufacturers such as Nvidia Corporation and Micron Technology have also had tough weeks.
Over the last five days, Nvidia’s shares (Nasdaq: NVDA) fell 7.1% and Micron’s dropped 14.48%.