Semiconductor stocks fall on weakness in U.S. tech stocks

Samsung Electronics’ Device Solutions America headquarters in Silicon Valley. [Courtesy of Samsung Electronics Co.]

South Korean semiconductor stocks, including Samsung Electronics Co. and SK hynix Inc., fell in early trading on Thursday due to the overnight decline in U.S. tech stocks.

Samsung Electronics shares were trading at 73,700 won ($53.46) as of 9:16 a.m. on Thursday, down 1.34 percent from the previous session and reversing its three-day upward trend. SK hynix shares were also down 3.72 percent from the previous session to trade at 163,000 won, and those of Hanmi Semiconductor Co. fell 4.17 percent.

In the secondary Kosdaq market, HPSP Co. and EO Technics Co. saw their shares drop 2.10 percent and 3.65 percent respectively.

As concerns about a U.S. economic recession and ripples from the Super Micro Computer Inc. earnings shock continue, investment sentiment towards tech stocks weakened overnight on the New York Stock Exchange, which led to declines in Nvidia Corp. (-5.1 percent), Advanced Micro Devices Inc. (-1.2 percent), Broadcom Inc. (-5.3 percent), and Micron Technology Inc. (-2.5 percent). The Philadelphia Semiconductor Index also fell by 3.09 percent.

“The Super Micro Computer earnings sparked profitability concerns in the artificial intelligence (AI) sector, which affected semiconductor-related stocks,” KB Securities Co. analyst Kim Ji-won said.