Tensions in the Middle East and Google's new technology, Samsung Electronics and SK Hynix stock prices plummet

Escalating military tensions in the Middle East and Google’s release of new technology are impacting South Korea’s semiconductor industry, and both Samsung Electronics and SK hynix’s stock prices fell. Samsung Electronics fell 1.89% on the day, closing at 176,300 won; SK hynix fell 5.31%, closing at 873,000 won.

The primary reason for the drop in stock prices is the recent military conflict between Israel and Iran in the Middle East. This has led to increased regional instability, and investor sentiment appears to be shrinking. In particular, as Iran’s allied forces—Yemen’s Houthi armed group—joined the fighting, the market’s reaction has become even more sensitive.

Another important factor is the new technology released by Google, an innovating company in the tech sector—Turboquant. It is reported that this technology can significantly reduce the amount of memory required for large-scale language models. This makes it more likely that memory demand will decrease, thereby weakening buying interest in semiconductor stocks. The technology has sent shockwaves across the entire semiconductor market, and the Philadelphia Semiconductor Index has also declined by 1.69% recently.

Experts believe that the likelihood of increased stock-market volatility in the near term still remains. Factors such as negotiations between the United States and Iran, developments in major U.S. economic indicators, and news related to Turboquant are all seen as potential causes of instability in semiconductor stocks. Therefore, how stock prices will react to future developments will require further observation. Experts also have an opinion that this kind of market adjustment, from a medium- to long-term perspective, may also become an opportunity for positive structural readjustment.