SK Hynix shares slide, as DeepSeek AI models cut memory demand

SK Hynix shares declined after reports that Chinese AI firm DeepSeek developed models requiring less high-bandwidth memory (HBM). This development raised investor concerns over future demand for HBM, a critical high-margin product for major manufacturers.

The news triggered a broad market reaction on September 11. SK Hynix stock fell 2.2%. Samsung Electronics shares dropped 3.5%.

While some analysts view the shift as a short-term setback, the sell-off highlights the sensitivity of chipmaker valuations to AI technology advancements.