Samsung and SK Hynix rebound over 2% as AI memory stocks face cyclical shift

Samsung Electronics and SK Hynix rebounded over 2% on Friday after Thursday's sharp tech selloff, though the recovery leaves investor valuation of AI memory stocks unresolved. Both companies rose after falling 9.48% and 11.06% respectively, with the KOSPI index plunging 7.57% to a six-month low and triggering a circuit breaker. The bounce reflects bargain hunting after seven negative sessions, while memory fundamentals remain solid but investors increasingly view AI hardware as cyclical. The key risk is whether hyperscalers cut AI infrastructure spending longer than expected, compressing memory prices and margins. TSMC reported strong AI demand exceeding supply, but concerns about AI profitability beyond 12 months and competition from China's CXMT persist.