UPDATE 1-South Korean chip stocks slide after overnight US selloff on AI boom concerns
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SEOUL, July 8 (Reuters) - Shares of South Korean memory chipmakers Samsung Electronics 005930.KS and SK Hynix 000660.KS fell as much as 4.4% and 5%, respectively, in early trade on Wednesday, tracking a broad selloff in U.S. semiconductor stocks on growing concerns about the sustainability of the AI-driven chip boom.
High-flying memory and semiconductor stocks tumbled overnight, with Intel INTC.O, Micron MU.O and AMD AMD.O closing down 9.7%, 4.7% and 6.5%, respectively. MKTS/GLOB
Also, the Philadelphia Semiconductor Index lost .SOX 4.7% as investors questioned whether AI-related spending can be sustained.
The selling was triggered by Samsung's second-quarter preliminary earnings on Tuesday, after the chipmaker's estimate of a 19-fold jump in quarterly operating profit failed to satisfy investors' lofty expectations despite robust demand for AI memory chips.
Samsung's shares tumbled, fuelling a broader retreat from AI-related investments that later spread to Wall Street.
By 0037 GMT, however, Samsung pared losses to trade down 2.3%, while SK Hynix had reversed course to rise 0.2%, outperforming the benchmark KOSPI .KS11, which was down 1.4%.