Broadcom's softer-than-expected AI chip guidance triggers semiconductor selloff, hitting SK Hynix and Samsung stocks in Seoul

SK Hynix stock dropped over 8% and Samsung shares declined over 5% on Friday after Broadcom projected $16 billion in AI chip revenue for the third quarter, below estimates of $17.2 billion. The Roundhill Memory ETF (DRAM), which tracks the memory chip sector, declined over 5% in overnight trading and would mark its second consecutive close in the red if the move holds.

SK Hynix, Samsung, and Micron are the three biggest holdings in DRAM and major beneficiaries of the AI boom through high-bandwidth memory (HBM) chips used in Nvidia's AI accelerators. Nvidia CEO Jensen Huang certified all three vendors to supply HBM4 for Nvidia's accelerators, with all three in production and set to support Vera Rubin, Nvidia's next-generation system scheduled for deliveries in the third quarter of this year.

DRAM has gained 125% since it launched on April 2. Retail sentiment for DRAM remained 'bearish' on Stocktwits early Friday, though some traders viewed the decline as a buying opportunity.