Samsung Electronics and SK Hynix shares fell sharply on Monday, with both stocks dropping more than 4% as foreign and institutional investors resumed selling after the Chuseok holiday. The selloff marks a volatile reopening for Seoul's market, raising questions about the durability of the memory-chip rally.
By mid-morning in Seoul, Samsung was trading at 273,000 won, down 4.38%, while SK Hynix had slipped 4.78% to 1.773 million won. The KOSPI index also retreated, falling back below the 7,000 level. The decline follows a period of gains before the holiday, when Samsung closed up 3.07% and SK Hynix rose 0.87% on September 23.
The market reopened after a long break, with investors digesting several overseas sessions at once. During the three U.S. trading days while Korea was closed, the Nasdaq fell 0.6% and the Philadelphia Semiconductor Index slipped 0.2%, according to MoneyToday. At 9:30 a.m., foreigners had sold a net 156.2 billion won of KOSPI shares, and institutions had sold 23 billion won, while retail investors bought 165.2 billion won.
Kiwoom Securities analyst Han Ji-young told MoneyToday that U.S. employment data, Korean exports, and Micron's earnings would create an "active tug-of-war" around the KOSPI's 7,000 level this week. The selling pressure is notable, but some analysts argue that the underlying memory market remains tight.
Yuanta Securities Korea analyst Baek Gil-hyun recently raised his Samsung target price to 630,000 won. In comments reported by Seoul Economic Daily, Baek said HBM production is absorbing conventional DRAM capacity while AI inference is lifting demand for higher-capacity memory. "Supply constraints are likely to ease later than expected," he said. Yuanta expects memory bottlenecks to persist through 2028.
This suggests that Monday's selloff may be more about positioning than fundamentals. Foreign investors have shown a willingness to rotate away from Korea's biggest semiconductor winners, and elevated expectations leave both stocks vulnerable to disappointment. However, the distinction is important: share-price positioning is weakening faster than the industry's core supply and earnings assumptions.
If DRAM contract prices remain firm and HBM demand stays tight, the drop could be seen as a reset. If those assumptions weaken, the repricing could deepen. The next clear test comes on September 30, when Micron Technology reports its fiscal fourth-quarter earnings.
Investors will focus less on whether Micron beats quarterly estimates and more on management's commentary about 2027 DRAM supply, HBM demand, contract pricing, and margins. Stifel analyst Brian Chin has maintained a Buy rating and a $1,500 target. He expects DRAM bit shipments to grow only around 15% to 20% in 2027 and argues that investors still underestimate the cycle's durability. "We believe the durability of this memory upcycle continues to be under-appreciated," Chin said.
Micron's report will serve as a direct read-through for Korea's two memory leaders. Strong pricing and supply commentary would support the view that Monday's selling is largely positioning and macro risk. A weaker outlook would be more damaging because it would challenge the fundamental assumption behind the recent rebound.
This article is for informational purposes only and does not constitute financial advice.
