SK Hynix Shares Slide on DeepSeek Worry as Korea Market Reopens
- Stock drops more than 11% after Lunar New Year holidays
- Competitor Samsung gets approval from Nvidia for memory chips
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Shares of SK Hynix Inc., a key supplier to Nvidia Corp., tumbled more than 11% in post-holiday catchup trading after Chinese startup DeepSeek shocked the AI world.
The surprising news this week that DeepSeek’s new AI model was potentially more advanced than expected, at a much cheaper cost, caused a rout in global chip stocks while South Korea was shut for Lunar New Year. Shares of Nvidia and others have recovered to different degrees but investors are still on edge.