AI Hardware Stocks Drop Up to 53% While Hong Kong Tech Surges 46%

Leading AI chipmakers and storage firms retreated sharply amid ROI concerns, while capital rotated into undervalued Hong Kong internet leaders, driving significant outflows from Korean markets.

Woofun AI reports that the AI hardware sector experienced a sharp correction over the past month, with key players posting significant declines. SK Hynix fell 53% over 34 days, Micron Technology dropped approximately 47%, Intel decreased by roughly 34%, Samsung Electronics declined about 32%, and Micron Technology decreased by approximately 28%. Market participants cited concerns regarding AI capital expenditure returns, valuation levels, and supply chain competition.

Conversely, capital rotated toward Hong Kong-listed platform leaders. Xiaomi Corporation rose approximately 46%, Meituan increased by roughly 36%, JD.com gained about 28%, Alibaba Group climbed approximately 22%, and Tencent Holdings advanced roughly 11%. Foreign investors net sold 12.1 trillion Korean won on the KOSPI main board and 338.1 billion Korean won on the KOSDAQ in mid-July, while southbound funds injected $1.6 billion into Hong Kong stocks between July 16 and 22, contributing to a cumulative $11.1 billion inflow since July start.