Samsung Electronics and SK Hynix shares plummeted following reports that Meta Platforms will launch a cloud business to sell excess AI computing power.
Meta’s move suggests major hyperscalers may have overinvested in AI infrastructure. This shift raises investor fears of a market glut and a potential peak in massive AI chip spending.
Memory chip makers face a possible slowdown in future orders after benefiting significantly from the AI boom.
The news sparked a broader semiconductor sell-off. U.S. chipmakers including Micron, AMD, and Intel also saw share prices decline.