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 sharp tech selloff, though the recovery leaves investor valuation concerns unresolved. Both firms had plunged 9.48% and 11.06% respectively on Thursday, when the KOSPI fell 7.57% to a six-month low and briefly triggered a circuit breaker. Memory fundamentals remain strong, but investors increasingly treat AI hardware as cyclical rather than structural growth. TSMC reported robust AI demand exceeding supply, and DDR5 spot prices continue rising. However, concerns about AI profitability beyond 12 months, Chinese competitor CXMT's progress, and potential hyperscaler capital expenditure cuts keep pressuring valuations.