SK hynix shares tumble after DeepSeek’s low-cost AI model shakes chip market
Published: 31 Jan. 2025, 10:33
Updated: 31 Jan. 2025, 13:25
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- LEE JAE-LIM
- [email protected]
![SK hynix headquarters at Icheon, Gyeonggi, on Jan. 23. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/01/31/7f5a5f67-ac33-4234-ab54-eb0a22bdc34a.jpg)
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.
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]]
with the Korea JoongAng Daily
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