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

Samsung Electronics and SK Hynix rebounded over 2% on Friday after Thursday's tech sector crash, but the recovery does not resolve how investors should value AI memory stocks. Both companies rose more than 2% following declines of 9.48% and 11.06% respectively on Thursday, when the KOSPI fell 7.57% to a six-month low and briefly triggered a trading halt. The rebound reflects bargain hunting after seven consecutive declines, while foreign investors sold about 3.6 trillion won in Korean stocks amid higher US inflation and AI spending doubts. Memory market fundamentals remain strong, with TSMC reporting AI demand as "extremely robust" and DDR5 spot prices rising, but investors increasingly view AI hardware as cyclical rather than structural growth. Key risks include hyperscalers cutting AI infrastructure spending, Chinese competitor CXMT advancing its technology, and questions about whether AI investments will generate sufficient returns.