The global semiconductor company sector is under downward pressure today due to the uncertain tone of SK Hynix's comments towards investments next year. Although the Korean company reported very strong Q4 results (highest revenue ever), management added that capital spending in 2025 will increase only slightly compared to last year,and this conservative investment plan has fueled market concerns about slowing demand.
Moreover, CFO Kim Woo-hyun warned of weaker demand for memory chips used in computers and smartphones and increasing competition from Chinese companies.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSK hynix was the first to begin mass production of 12-layer HBM3E high-bandwidth memory last year, outpacing rival memory giants Samsung and Micron Technology in the GPU accelerator sector.
Given the company's importance in the global new technology industry, it is not surprising that stocks from this sector are under downward pressure in today's session. In Europe itself, an additional factor of uncertainty was the announcement that the Prime Minister of the Netherlands said that export restrictions on the sale of ASML technology to China will remain an important topic of negotiation between the US, Europe and China.
Shares of technology companies are under heavy downward pressure today. Source: xStation
