Shares of SK hynix, a major memory chip supplier to Nvidia, nose-dived on the Kospi bourse Friday as the market reopened for the first time this week, following the release of a low-cost AI model by Chinese startup DeepSeek.

Shares of SK hynix, a key memory chip supplier to Nvidia, dropped sharply on the Kospi stock exchange on Friday, declining over 9 per cent as the market reopened after the Lunar New Year holiday. The decline follows the debut of Chinese AI startup DeepSeek’s open-source AI model,

SK Hynix Inc. shares tumbled more than 11%, as the South Korean stock market resumed trading Friday after holidays during which Chinese startup DeepSeek shocked the AI world.Most Read from BloombergMa

SK Hynix CFO Kim Woohyun said that the outlook for memory demand in 2025 was clouded by inventory adjustments, protective trade policies and geopolitical risks.

Nvidia (NASDAQ:NVDA) has approved Samsung Electronics (KS:005930) 8-layer HBM3E chips for artificial intelligence applications, Bloomberg reported. The chips will be used in Nvidias AI products for China,

Samsung Electronics (SSNLF) warned of slower demand for its AI chips in the first quarter of 2025 partly due to U.S. export restrictions.

SK Hynix's shares slumped, hit by the shock from Chinese artificial-intelligence startup DeepSeek as stock trading resumed in South Korea after a four-day holiday.

South Korea's SK Hynix forecast sales of its high-end semiconductors used in generative artificial intelligence chipsets would more than double this year, after reporting a quarterly profit record that beat a results estimate for rival Samsung.

SK hynix has just posted its best-ever yearly earnings for 2024: $46.1 billion in sales, revenues increased by 102% thanks to HBM and AI demand.

Samsung's Q4 revenue grew by 12% Y/Y to $52.2B, but operating profit declined by 30% Q/Q due to soft market conditions and higher R&D costs.

The company’s Q4 revenue increased by 12%, and its operating profit rose by 15%, making for its best quarter ever, SK Hynix said in a statement. The company also announced that its revenue for the year was 66.1930 trillion won (roughly $46.13 billion). SK Hynix raised its annual fixed dividend for shareholders by 25%.

SK Hynix Inc., a major supplier of memory chips, has announced record quarterly earnings. However, investors have reacted cautiously. Concerns about smartphone demand and future AI spending have tempered enthusiasm.