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 sharp tech selloff, but the recovery leaves investor valuation of the AI memory sector unclear. Both stocks had fallen 9.48% and 11.06% respectively, with the KOSPI dropping 7.57% to a six-month low. The bounce follows seven consecutive losing sessions and reflects bargain hunting after panic selling, with foreign investors offloading about 3.6 trillion won. Analysts note memory fundamentals remain strong, with TSMC calling AI demand "extremely robust" and DDR5 spot prices rising, yet investors increasingly treat AI hardware as cyclical rather than structural growth. The key risk is whether hyperscalers cut AI infrastructure spending longer than expected, which would collapse memory prices and margins. Chinese competitor CXMT's technological progress and financing cost concerns persist, while foreign investors had sold over 12 trillion won in Korean stocks before Thursday's selloff.