SK hynix shares tumble after DeepSeek’s low-cost AI model shakes chip market

Home > Business > Industry

print dictionary print

SK hynix shares tumble after DeepSeek’s low-cost AI model shakes chip market

SK hynix headquarters at Icheon, Gyeonggi, on Jan. 23. [YONHAP]

SK hynix headquarters at Icheon, Gyeonggi, on Jan. 23. [YONHAP]

 
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.
 
SK hynix shares were trading at 201,000 won ($138.49) as of 10:32 a.m., a 9.05 percent decline from the previous trading session on Jan. 24. Immediately after the market opened, shares fell by as much as 11 percent, briefly dipping below the 200,000-won mark.
 
The Kospi was closed from Monday to Thursday due to the Lunar New Year holiday.  
 

Related Article

 
On Jan. 20, DeepSeek launched its open-source AI model R1, reportedly cheaper and faster to train with less-advanced chips but functionally competitive with models like GPT-4 and Llama 3.
 
The successful debut of R1 has raised concerns that demand for high-performance, high-cost chips from Nvidia may decline, affecting SK hynix as a key supplier of high bandwidth memory chips.  
 
Shares of Samsung Electronics, another Korean chipmaker, slipped 2.42 percent to 52,400 won at 10:32 a.m.  
 

BY LEE JAE-LIM [[email protected]]
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)