Gotrade News - Asian chip stocks fell again on Monday, October 19, as a new DeepSeek model and AI funding worries hit memory makers. South Korea's Kospi dropped as much as 3.2% and Samsung Electronics and SK Hynix each lost more than 4% intraday, according to Bloomberg, as reported by Briefs Finance.
The slide follows the Kospi's worst week since October 2008, according to Briefs Finance, citing Bloomberg, and extends the Asia chip stock rout that began when Chinese memory maker CXMT claimed a DRAM design breakthrough. Japan's Nikkei 225 fell about 2%, with chip-test equipment maker Advantest among the biggest decliners.
MU, SNDK and CRWV Market Data
| Ticker | Close | Daily change | Market cap | 52-week range |
|---|
| MU | $878.84 | -5.63% | $994.3 billion | $192.40 to $1,255.00 |
| SNDK | $1,299.30 | -6.85% | $188.8 billion | $136.29 to $2,354.39 |
| CRWV | $61.39 | -11.91% | $33.9 billion | $59.51 to $141.79 |
Regular-session close on October 16, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against Nasdaq's official close. Market cap: Nasdaq, as of October 19, 2026.
Kospi Falls as Much as 3.2% as Samsung and SK Hynix Slide
Korean chipmakers came under pressure before the regular session opened. As reported by Seoul Economic Daily, SK Hynix traded at 1,185,000 won in premarket dealing on Nextrade as of 8:20 a.m. local time, down 6.84%, while Samsung Electronics was at 202,500 won, down 6.03%. SK Square fell 7.65% and Samsung Electro-Mechanics dropped 9.60% in the same window.
Both Samsung and SK Hynix pared part of those losses during the day, per the Bloomberg report summarized by Briefs Finance. Even after the selloff, the Kospi remains more than 30% higher for the year, the same report said.
On a five-hour chart, SK Hynix sits about 20.6% below its 20-period moving average, with a relative strength index reading of 18.2, according to Investing.com.
Why Did DeepSeek's New Model Hit Memory Stocks?
DeepSeek's weekend update raised fears that future AI workloads could need less memory. The Chinese AI lab says the new model is faster and more efficient, according to the Bloomberg report cited by Briefs Finance, and investors read that as a possible drag on demand for high-bandwidth memory, a key AI server component.
The timing matters because AI spending had pushed memory prices to record highs, the same report noted.
"There are too many uncertainties to call a bottom," Kang DaeKwun, chief executive of Life Asset Management, told Bloomberg. "Korean companies cannot make money unless the US firms continue to spend."
Why Did CXMT Rattle Chip Traders Last Week?
CXMT announced progress on a denser memory-chip design earlier in the week, which sparked the first leg of the selloff, according to 24/7 Wall St. The Kospi rebounded on Friday after a steep Thursday plunge, but US-listed memory shares kept falling.
Goldman Sachs pushed back on the fear. Per 24/7 Wall St., the bank told clients that the market has overestimated how quickly CXMT can close the technology gap in advanced memory chips. That is Goldman's view, not a verified read on CXMT's manufacturing progress.
Micron (MU): Down 5.6% as AI Debt Fears Spread
The pressure on Korean chipmakers came after a weak Friday on Wall Street. As reported by Seoul Economic Daily, Micron (MU) fell 5.6% and the Nasdaq Composite dropped 2.14%, leaving the index down 4.48% for the week, its worst week since June. US semiconductor stocks logged an eighth straight day of declines on Friday, according to the Bloomberg report cited by Briefs Finance.
Micron is one of the three largest listed positions in the Roundhill Memory ETF alongside Samsung and SK Hynix, and it is shipping HBM4 to a lead customer, per 24/7 Wall St.
SanDisk (SNDK): Goldman Sees Less Exposure to CXMT
SanDisk (SNDK) slid with the memory group last week, according to 24/7 Wall St. Goldman Sachs reportedly views SanDisk's flash storage as less exposed to the CXMT technology than the high-bandwidth memory chipmakers, the outlet said.
CoreWeave (CRWV): Debt Protection Costs Jump Above 1,200 Basis Points
The funding side of the AI trade is the second worry. CoreWeave (CRWV) fell 11.91% on Friday, and the premium on its credit default swaps rose from the 900 basis point range to above 1,200 basis points, according to Seoul Economic Daily, a sign the market sees sharply higher default risk.
The paper linked the pressure to forecasts that too much capital is flowing into AI data centers while returns may be thin, and to questions about CoreWeave's ability to service its debt. "This is a period of rising doubts about AI companies' ability to raise funds and generate cash," said Han Ji-young, an analyst at Kiwoom Securities, as quoted by Seoul Economic Daily. Brokerages see AI-related stocks as oversold, but expect volatility to persist for some time, the outlet reported.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
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