:quality(82)/2dcb42bf99444cbc8e0debfdfd30acc2 "SK Hynix Shares Fall 7.74% After Democrats Win Congress")
SK Hynix shares fell 7.74% to 1,288,000 won on Thursday as Korean chipmakers sold off after U.S. Democrats won control of Congress, reviving fears that tighter artificial intelligence rules could slow data center construction and cut demand for the high-bandwidth memory chips the company supplies, BeInCrypto reported.
The decline left investors in South Korea’s two largest memory makers exposed to U.S. AI policy. The KOSPI fell 1.98% to 5,570.99 at 9:15 a.m., and SK Hynix opened down nearly 8%, according to TradingView data cited by BeInCrypto.
Why did SK Hynix and Samsung shares drop?
Samsung Electronics fell 5.50% to 206,000 won at 10:01 a.m. The sell-off followed the Democratic victory in Congress, which reignited concerns that the new majority could tighten rules on AI data centers. Those facilities drive demand for high-bandwidth memory (HBM) chips supplied by SK Hynix and Samsung, BeInCrypto reported.
What do polls and analysts say about AI data center rules?
A USC Annenberg poll of 2,980 adults found that 78% believe the government does too little on data centers, including 69% of Republicans. Yonhap cited no specific bill behind the chip sell-off. On October 25, Goldman Sachs cut its KOSPI target to 9,000 from 12,000, estimating that chip valuations implied a 65% drop in sector earnings in 2027 and calling those valuations excessively pessimistic.
How far have the stocks fallen recently?
TradingView data shows SK Hynix down 29.86% over one month and Samsung down 26.39%, though SK Hynix remains up 97.70% year to date. SK Hynix closed at 1,487,000 won on October 28 after posting record quarterly sales of 104.6 trillion won; the stock now trades about 13% below that closing price.
Congressional shift alters market expectations
Democrats take control of Congress when lawmakers are sworn in on January 3, WBUR reported. The sell-off would appear excessive if, after that date, Congress passes no new rules, BeInCrypto reported.
What do traders still want to know about the chip sell-off?
Did any specific bill trigger the decline?
No. Yonhap cited no specific legislation behind the sell-off, according to BeInCrypto.
How far is SK Hynix below its October peak?
The stock closed at 1,487,000 won on October 28 and now trades roughly 13% below that level.
What did Goldman Sachs project for 2027?
The bank estimated that current chip valuations implied a 65% drop in sector earnings in 2027 and described that scenario as excessively pessimistic.
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