Samsung Electronics and SK Hynix shares declined sharply despe projections for record first-quarter sales driven by high-bandwidth memory (HBM) chips for AI applications. Investors expressed concerns over intensifying competion from central processors and Google’s Tensor Processing Un (TPU) innovations, which appear to reduce memory dependency.
Robust First-Quarter Sales Projections
Analysts forecast combined first-quarter revenue for Samsung Electronics and SK Hynix to reach 70 trillion won, matching the full-year revenue of major PC and server makers. Samsung’s HBM business is expected to surge to as much as 45 trillion won, up from around 30 trillion won previously, fueled by massive supply deals.
SK Hynix anticipates 30 trillion won in sales, wh roughly 80% derived from HBM products. Shipments of fifth-generation HBM3E to Nvidia and others underpin this growth, posioning sixth-generation HBM4 for deployment in next-generation AI supercomputers.
Sharp Stock Declines Amid Broader Rally
On March 30 local time, Nvidia shares surged 9.88%, while Sandisk climbed 7.04%, lifting the Philadelphia Semiconductor Index by 4.23%. In contrast, Samsung Electronics and SK Hynix stocks fell, erasing over 37.2 trillion won in combined market value since early March. Losses are projected to exceed 40 trillion won by March 31.
This downturn reflects investor worries that Nvidia’s GPUs and Google’s TPU algorhms demand less memory. Google’s disclosed AI compression technology, dubbed “TPU Context,” processes up to six times more data using the same memory footprint, challenging the narrative of escalating memory needs.
Industry Insights and Market Pressures
A senior researcher at a leading investment firm noted, “Sales figures align wh these developments, amplifying market anxiety premiums.” The analyst added, “To rebuild investor trust, companies must pursue bold strategic compensation measures, including real-time adjustments and growth iniatives.”
Broader pressures include softening DDR5 memory prices, which reversed course by late March after Chinese preemptive stockpiling. Samsung Electronics plans a massive put option sale totaling 14.5 trillion won on March 31, acquiring over 73 million bottom shares and 13.6 million call shares for April 2 execution.
SK Hynix shares have plunged 25% from 109,900 won at February’s end to around 80,700 won, wh U.S. deposary receipts (ADRs) also underperforming amid heightened volatily.
Outlook Amid Competive Shifts
Industry observers indicate the stock declines stem partly from Nvidia’s elevated multiples and psychological factors among global investors. However, first-quarter sales guidance remains solid. Meeting aggressive targets may require fresh capal inflows and sustained R&D investments, even as competive dynamics evolve.
