Is the storage leader’s sharp drop due to deteriorating fundamentals?

#SK海力士 跌超15%，#Samsung Electronics’ decline also exceeded 10%.
Together, the two companies account for an important share of the global #DRAM 和 #HBM market, so their plunge directly leads to a re-pricing downward of valuations across the global storage industry chain.
The KOSPI index in South Korea fell more than 8% intraday, and the Korea Exchange triggered a circuit breaker (pausing trading for 20 minutes), further spreading panic sentiment in the market.
Global risk appetite declines
Today, Asia-Pacific technology stocks overall faced pressure. With a recent escalation of the Middle East geopolitical situation and oil prices rising, funds pulled out of high-valuation tech stocks, making AI and semiconductors the main targets for selling.
Profit-taking
The storage sector had already been rising for a long time, especially the HBM and AI storage themes, which saw huge gains. Today, under external negative catalysts, capital focused on locking in profits, and Hong Kong stocks and semiconductor stocks in Japan and South Korea weakened in tandem.
At present, it looks more like sentiment and valuation adjustments, rather than a sudden reversal in industry conditions.
1) Storage prices have not collapsed;
2) Demand for HBM and high-end DRAM from AI servers still exists;
3) Today, the market’s main worries are excessive valuations, taking profits, and a warming global risk-off sentiment.
Watch three signals closely:
1) Whether SK hynix and Samsung Electronics can stop the fall and stabilize;
2) The performance of US-listed AI semiconductors (especially storage and compute) this week;
3) Whether spot prices of DRAM and NAND show continued declines.
If these three factors do not further worsen, then it is more likely to be a rapid pullback from elevated levels rather than a fundamental change in industry logic.