Markets Selloff: Korean Stocks Fall 10% From Record

• SK Hynix is reportedly shifting production capacity from high-margin HBM4 AI chips to commodity DRAM memory.
• This shift raises concerns among investors about the momentum and cost dynamics of the broader AI trade.
• Nasdaq futures have taken a significant leg lower, and there is increased pressure on Micron's upcoming earnings.
• Many momentum tech stocks and baskets have seen triple-digit gains year-to-date, suggesting a potential correction.

Global tech stocks are extending declines, primarily driven by concerns in the semiconductor sector. Reports suggest SK Hynix is shifting production focus from high-value HBM4 AI chips to more commodity DRAM memory, raising questions about the sustainability and cost dynamics of the AI trade. This has led to a significant leg lower in Nasdaq futures and puts pressure on Micron's upcoming earnings.