Samsung and SK Hynix Shares Slump as DeepSeek AI Model Cuts Memory Needs

Key Facts

1Samsung Electronics and SK Hynix shares fell over 3% in Seoul after DeepSeek announced a new AI model that significantly reduces memory consumption.

2Local retail traders have sold approximately $10 billion worth of shares in both companies during the current month.

Amid rapid technological shifts in the artificial intelligence sector, semiconductor giants are facing renewed pressure as software efficiencies challenge hardware demand. Shares of Samsung Electronics and SK Hynix fell by more than 3% in Seoul following DeepSeek's announcement of a new AI model designed to significantly reduce memory consumption. According to reports, the V4.1-Flash model utilizes advanced compression to lower hardware requirements, a move that threatens the long-term demand projections for high-bandwidth memory (HBM) and DRAM chips produced by the Korean manufacturers.

This market reaction underscores growing concerns over shifting industry dynamics, with local retail traders selling approximately $10 billion worth of shares in both companies during the current month. Per market data, SKHY closed at $190.52 on September 11, 2026, while SMSN.L stood at $4848 as of its September 10, 2026 close. The sell-off reflects a strategic pivot by investors as they weigh the impact of memory-efficient AI architectures on the future revenue streams of traditional chipmakers.

Monitoring current price levels is essential for assessing further downside risk; SKHY reached a day low of $187.01 on September 11, 2026, while SMSN.L touched $4776 on September 10, 2026. While recent economic data showed South Korea's unemployment rate held steady at 2.7% on September 8, 2026, the focus for tech investors remains firmly on the evolving competitive landscape of AI hardware and the potential for reduced capital expenditure from major tech firms.