SK Hynix's stock price had previously surged due to demand for AI memory chips, with plans for a large-scale listing in the U.S. and record highs, but has recently experienced significant volatility, including a rapid pullback after jointly leading KOSPI gains with Samsung Electronics.

In terms of capital flow, retail investors heavily invested in chip stocks through leveraged ETFs and margin loans, while institutions and foreign investors simultaneously reduced holdings amid profit-taking and risk aversion, shifting funds from overvalued AI themes to defensive positions, amplifying downward pressure on the market.

Similar to the semiconductor cycle adjustment phase in 2022, SK Hynix and Samsung are currently in a transitional phase of renegotiating pricing power after the AI boom, with the market shifting from extreme optimism to questioning the sustainability of demand.

This essentially represents a reversal of capital concentration: previously, funds were highly concentrated in a few chip giants, driving up valuations, and once an external trigger occurs (such as a tech pullback in U.S. stocks or profit-taking), concentrated positions lead to a chain of forced selling, mechanically accelerating the deleveraging process through leverage rebalancing and circuit breakers.

ABAB News · Law of Cognition

Leverage amplifies gains but also accelerates crashes; when the structure is fragile, one misstep leads to total loss.
Capital concentration creates giant myths but generates systemic fragility during reversals.
Pursuing pricing power during boom periods reveals the cost of relying on a single theme during downturns.