SK hynix pulls back sharply! Cui Taiyuan shouted to stick to his position: storage demand will grow exponentially
SK hynix pulls back sharply! Cui Taiyuan shouted to stick to his position: storage demand will grow exponentially.
Memory chip stocks have soared over the past year as the AI boom continues to heat up, only to sell off violently in recent weeks as investors increasingly question the sustainability of massive capital spending in AI. Among them, the share price of South Korean memory chip giant SK Hynix has fallen by nearly 40% from the historical high hit last month. Faced with a sharp correction in stock prices, SK Group Chairman Choi Tae-won left the market on Friday to offer "reassurance." He said that given that market demand for memory chips will continue, SK Hynix's stock price will trend upward in the long term. He called on investors to stick to their positions and not chase daily market fluctuations. “I don’t know how high the stock price will rise next month,” Choi Tae-won said at the Korea Chamber of Commerce and Industry (Korea Chamber of Commerce) Jeju Forum on Friday. "Rather than buying and selling frequently, it is better to hold it for a long time. This is a better way to preserve wealth." Choi Tae-won, who is also chairman of the Korea Chamber of Commerce and Industry, said his confidence comes from the long-term outlook for storage semiconductors, which are at the heart of the AI boom. He said that he is confident in SK Hynix's long-term growth prospects because with the development of the AI industry, the demand for memory chips will continue to rise. "AI is like a 4-year-old child now," he said, "but to grow into an adult, it must be inseparable from memory." He also added that storage requirements "will only grow exponentially." However, Cui Taiyuan also admitted that as investors embraced AI opportunities, SK Hynix’s stock price had indeed risen too sharply, and bluntly stated that the market sometimes “runs ahead of reality.” "As expectations get better, the stock price will rise; if it feels less optimistic, the stock price will fall." He said, "Because it rose too fast before, sometimes reality does take a little time to catch up." SK hynix is a subsidiary of SK Group. Recently, the chip giant listed on Nasdaq in the form of American Depository Receipts (ADRs). The scale of fundraising is second only to Musk's SpaceX, ranking second in the history of the US stock market. On Thursday, in the Korean market, SK Hynix’s share price fell 11.53% to close at 1.842 million won. Driven by the artificial intelligence craze, the stock has surged nearly 6 times in the past year, but has fluctuated violently in the past few weeks. On Monday, the Korean stock market was closed for a public holiday. As Choi Tae-won issued the above warning, speculation surrounding SK Hynix's stock was rife. The recent wave of SK Hynix leveraged ETFs that have flooded into the market has significantly amplified the stock's volatility. South Korean regulatory authorities have taken action to rectify the chaos of such chip stock leveraged ETFs and announced a package of measures on Thursday, including raising the margin threshold. (