SK Hynix's stock price plunged over 20% in two days, signaling a downturn in AI trading.

SK Hynix continued its sharp decline in Seoul on Tuesday, with a drop of over 20% in the past two days; global AI hardware stocks faced sell-offs, exacerbating market concerns about the astonishing rise of chip stocks this year. Following a record plunge of 15% on Monday, this South Korean chip giant fell 9% on the South Korean stock exchange on Tuesday. The South Korean benchmark Kospi index fell by 5.3% at one point. Industry peer Samsung Electronics' stock price fluctuated. The latest wave of declines comes as investors continue to sell global technology hardware stocks, increasing concerns about overcapacity in the AI sector. For SK Hynix, which has been among the top performers in global stock price performance this year, the sharp volatility in its stock price also highlights the unusually large scale of leveraged bets related to it. With trading sentiments between Seoul and Wall Street influencing each other, the company's ADR listing in the US may amplify stock price fluctuations. As the July 23 earnings release date approaches, stock prices may further sharply fluctuate. One of the reasons for the selling pressure on Monday was a report by a local brokerage that SK Hynix's operating profit may be lower than the market's consensus estimates.