Asian semiconductor stocks plunge; SK Hynix misses estimates despite record profit

Asian technology stocks extended their sell-off on July 29, with semiconductor names leading declines after another weak US session. In South Korea, SK Hynix fell more than 10% after the chip giant posted record quarterly profit and revenue but nonetheless missed analyst estimates. Samsung Electronics lost over 4%, while LG Innotek fell 9% and Seoul Semiconductor dropped over 6%.

Japan's chip sector was hit harder: Kioxia (memory) slid 10%, Tokyo Electron fell 8.5%, and SoftBank Group—a major AI proxy through its Arm stake—lost more than 7%. TSMC, the world's largest contract manufacturer, fell 1.32%. The declines mirrored weakness in US chip stocks: Nvidia closed flat, Intel sank 6%, AMD fell 8%, Micron and Seagate lost 8%+, Western Digital fell 7%, and Sandisk shed 14%.

Aberdeen Investments' Kieron Poon attributed the weakness to "ongoing deleveraging in Korea and softer sentiment towards global technology stocks," but noted the pullback creates "opportunities for us to add exposure to high quality businesses at more reasonable prices." The sell-off signals concern about capex sustainability and near-term demand, even as chip makers report record results.

For architects and infrastructure planners, the disconnect—record chip profit alongside equity declines—highlights the gap between spot demand and long-term confidence in the capex cycle. The broader message: no immunity from macro volatility for chip leaders, and valuations may have run ahead of near-term visibility.