Asia-Pacific Semiconductor Rout: KOSPI Circuit Breaker, Nvidia Loses $250 Billion
Asia-Pacific semiconductor stocks plummeted on July 28, with South Korea's KOSPI index falling nearly 9.6% and triggering a 20-minute trading halt. SK Hynix dropped over 11%, Samsung Electronics over 9%, and Hong Kong-listed leveraged ETFs for both stocks fell over 26%. SK Hynix's drawdown from its peak reached 40%, wiping out over $470 billion in market value. Overnight, Nvidia shares slumped 5% after announcing a $500 billion AI partnership with SK Group and a $250 billion funding guarantee for OpenAI, losing its global market-cap lead and shedding about $250 billion. SK Hynix's US ADR broke below its $149 IPO price. The company will report Q2 2026 earnings on July 29, with conservative forecasts indicating profit 8% below consensus.
On July 28, Asia-Pacific semiconductor stocks fell sharply. South Korea's KOSPI index declined nearly 9.6% during trading, triggering the exchange's circuit breaker and halting the market for 20 minutes. SK Hynix dropped over 11% and Samsung Electronics fell over 9%. Two-times leveraged ETFs tracking SK Hynix and Samsung declined more than 26% in early Hong Kong trading. SK Hynix's maximum drawdown from its peak approached 40%, erasing over $470 billion in market value.
Overnight, US semiconductor stocks weakened broadly. Nvidia reached a $500 billion artificial intelligence cooperation agreement with the SK Group and plans to provide a $250 billion funding guarantee for OpenAI. As a result, Nvidia's credit default swap spread surged 14 basis points in a single day, its stock price slumped 5%, and its market capitalization evaporated by about $250 billion, causing it to lose its position as the world's most valuable company.
SK Hynix's US-listed American depositary receipt fell below the $149 IPO price, marking a break of the issue price. At 9 a. m. Seoul time on July 29, SK Hynix is scheduled to release its second-quarter 2026 earnings. Several South Korean brokerages have issued conservative forecasts, with profit expected to be 8% below market consensus. The market is now focused on the mass production progress of HBM4, the full-year expansion plan, and the industry supply-demand guidance for 2027.