Samsung Electronics and SK Hynix stocks plunged on Tuesday as Oracle’s plans to raise $20 billion revived doubts about the financial strain of the artificial intelligence boom.
Samsung fell 4.59% to 218,500 won, while SK Hynix dropped 5.10% to 1,397,000 won in early Seoul trading. The KOSPI slid 3.36% to 5,662.37 by 9:15 am, reversing Monday’s rebound in both chipmakers.
The retreat followed an 8.8% decline in Oracle shares on Wall Street, where Micron Technology also lost 5.8%.
Despite record Korean semiconductor profits, investors are increasingly questioning how long their biggest customers can finance rapid AI expansion.
Oracle $20 billion fundraising raises questions
Oracle announced plans on Monday to raise $10 billion through a share sale and another $10 billion in bonds as it expands cloud computing capacity.
The money could fund construction, debt repayment and other corporate needs; it does not represent lost revenue or cancelled chip orders.
Investors nevertheless recoiled. Oracle shares sank 8.8%, while the Nasdaq Composite lost about 1.1%. The fundraising highlighted how even major AI infrastructure providers are turning to capital markets to sustain expansion.
That matters for Samsung and SK Hynix because advanced memory is essential to the processors powering AI data centres.
If customers face higher borrowing costs or pressure to generate cash, future purchasing decisions could become more selective.
BNK Securities analyst Lee Min-hee warned, in comments published by Korea JoongAng Daily that growth in Big Tech’s AI infrastructure investment could peak in the third quarter, while deteriorating free cash flow and financing challenges persist.
Samsung and SK Hynix stocks: Record memory profits are no defence
Samsung reported third-quarter revenue of 195.3 trillion won and operating profit of 107.4 trillion won. Its semiconductor division alone contributed 106.5 trillion won in profit, reflecting strong pricing and demand for AI-related products.
SK Hynix delivered revenue of 104.6 trillion won and operating profit of 83.3 trillion won. Its high-bandwidth memory, or HBM, is stacked alongside advanced AI processors to move data rapidly, making it particularly valuable to data-centre operators.
Samsung expects AI-related memory requirements to outstrip supply in 2027. SK Hynix has also secured long-term agreements covering more than half of its planned 2027-28 production capacity.
SK Hynix also reported expanding HBM4 sales and server-memory shipments, reinforcing the strength of current demand.
That gives bulls a counterargument. Samsung Securities researcher Seo Jeong-hoon told Chosunbiz on November 2 that funding capacity and demand among large technology companies remained resilient, even as AI investment costs climbed. He considered worries about the sector excessive.
The sell-off therefore reflects uncertainty about future returns rather than evidence of an immediate collapse in semiconductor orders.
Can chip valuations recover after the latest setback?
Korea Investment & Securities cut its Samsung price target to 440,000 won from 570,000 won on Tuesday, but retained a buy rating.
Analyst Ko Young-min expects memory prices to remain supportive, although further gains may depend on Samsung improving its HBM and foundry businesses.
Investors will also watch upcoming US technology spending forecasts, Korean foreign-investor flows and whether chipmakers can maintain their extraordinary margins.
SK Hynix’s long-term supply contracts and shareholder-return plans offer some protection against changing sentiment.
Kiwoom Securities analyst Han Ji-young said that AI shares had already undergone a substantial correction.
A period of sideways trading, rather than another steep decline, could now be more plausible, he argued.
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