Nikkei 225 Slides nearly 4% as Samsung and SK Hynix Lead Global Chip Stock Selloff

Nikkei 225 slid nearly 4% Tuesday, dragged lower by a global chip stock selloff. Japan’s benchmark index fell to 62,350.18, its weakest level since late May. Samsung Electronics tumbled as much as 13.4%, while SK Hynix dropped up to 14%. South Korea’s Kospi index plunged 10.5% to 6,051.19, triggering a trading suspension. Concerns over AI infrastructure financing and Chinese competition drove the rout. 

China’s CXMT surged 466% on its Monday IPO debut, rattling memory chip rivals. Japan’s Kioxia plunged nearly 18%, while Tokyo Electron fell about 11%. The selloff extended losses from Wall Street’s overnight semiconductor decline.

Nikkei 225’s Chip-Driven Selloff Explained

Nikkei 225 (^N225) fell as much as 4.1% Tuesday, briefly dropping below 62,000 points. That marked the index’s lowest level since late May 2026. The broader Topix index declined nearly 3% during the same session. Semiconductor stocks accounted for most of Tuesday’s steep decline.

Nikkei 225’s key chip stock decliners Tuesday:

• Kioxia Holdings plunged nearly 18%, the session’s steepest Japanese decline.
• Tokyo Electron dropped almost 11% amid the broader equipment maker selloff.
• Advantest slid more than 10% alongside other chip-testing equipment makers.
• SoftBank Group fell 6.3%, reflecting its exposure through Arm Holdings.

Why Samsung and SK Hynix Led the Regional Rout

Samsung Electronics tumbled as much as 13.4% during Tuesday’s trading session. SK Hynix fell even further, dropping up to 14% at its lowest point. Together, the two firms represent nearly half of South Korea’s Kospi index. Their combined selloff dragged the broader Korean market down sharply.

South Korea’s Kospi Triggered a Trading Suspension

South Korea’s Kospi index plunged as much as 10.5% to 6,051.19 points. The Korea Exchange activated a 20-minute trading suspension to curb volatility. A “sidecar” mechanism also suspended programmed sell orders during the rout. This marks one of the sharpest single-day drops for Korean chip stocks.

Other Korean stocks caught in Tuesday’s selloff:

• Samsung SDI dropped more than 10% alongside its parent company.
• LG Innotek slid nearly 18%, tracking the broader supply chain selloff.
• Seoul Semiconductor fell about 7% during Tuesday’s volatile session.
• LG Chem lost more than 6% as sentiment soured further.

SK Hynix’s US-Listed Shares Already Signaled Trouble

SK Hynix’s American depositary shares closed 7.5% lower overnight at $143.02. That marked the first time shares traded below their $149 IPO price. SK Hynix debuted on US markets earlier this month amid strong AI demand. This overnight decline foreshadowed Tuesday’s steeper losses across Asian trading.

China’s CXMT Stirs Competitive Fears Across the Sector

Chinese memory chipmaker CXMT surged 466% during its Monday trading debut. The company raised at least $8.6 billion through its Shanghai STAR Market listing. That surge intensified investor concerns about China closing the memory chip gap. Reports of Chinese progress in domestic DUV lithography added further competitive worry.

China’s biggest memory chipmaker, ChangXin Memory Technologies (CXMT), just had an incredible stock market debut.

Its shares skyrocketed more than 500% on the first day of trading, pushing the company’s value above $500 billion.

CXMT is also a big part of China’s plan to grow… pic.twitter.com/Nk3voHMykG

— Pirat_Nation 🔴 (@Pirat_Nation) July 28, 2026

Broader signs of the AI chip valuation reset Tuesday:

• Taiwan’s TSMC fell 2.9% amid the broader semiconductor pullback.
• Mainland China’s ChiNext 300 index dropped 4.7% on the same concerns.
• The Hang Seng China Semiconductor Chips Index fell 5% Tuesday.
• Analysts flagged AMD as significantly overvalued relative to fair value estimates.

What Analysts Are Saying About the Rout

StoneX senior analyst Matt Simpson called this “the despair part of the selloff.” He said Nasdaq weakness is driving tech investors toward the exit broadly. Kiwoom Securities analyst Han Ji-young cited China’s advances as a key catalyst. Concerns over Nvidia’s financing structure also weighed on sentiment Tuesday.

A Rare Bright Spot Amid the Broader Rout

SK Hynix reportedly plans to mass-produce next-generation LPDDR6 mobile DRAM chips. Production is targeted for the second half of 2026, per South Korean media. That roadmap news did little to offset Tuesday’s steep share price decline. Investors remain focused on near-term valuation risk over long-term product plans.

Final Thoughts: What Analysts Are Watching Next

Analysts see this selloff as a genuine reset in AI infrastructure valuations. Nikkei 225’s nearly 4% drop reflects deep concern about chip demand sustainability. Samsung and SK Hynix’s losses show how concentrated risk has become in Asia. China’s CXMT debut adds a new competitive threat few investors had priced in. Wednesday’s trading will show whether this rout stabilizes or deepens further.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.