Samsung and SK Hynix rebound 2% as AI memory cycle doubts persist

Samsung Electronics and SK Hynix rebounded over 2% on Friday after Thursday's tech selloff, but the recovery does not resolve questions about AI memory valuations. Both stocks had fallen 9.48% and 11.06% respectively, with the KOSPI plunging 7.57% to a six-month low. The rebound reflects bargain hunting after seven consecutive sessions of declines, highlighting deeper tension. Memory fundamentals remain solid, but investors increasingly view AI hardware as a cyclical bet rather than structural growth. Foreign investors sold about 3.6 trillion won of Korean stocks amid US inflation concerns and AI spending doubts. TSMC reported AI demand as "extremely robust" with third-quarter profit up 69%, while DDR5 spot prices continue rising. However, analysts note concerns about AI investment sustainability beyond 12 months, with Chinese memory maker CXMT advancing technology and hyperscaler revenue questions unresolved.