AI memory chip stocks have fallen into bear market territory as of Wednesday's close, with major players down more than 20% from recent highs. South Korea's Kospi index dropped 20%, the Roundhill Memory ETF fell 23%, Samsung declined 27%, SK Hynix dropped 32%, Sandisk fell 26%, and Micron declined 22%. Despite these losses, each stock remains up triple-digit percentages in 2026, and the Kospi has a roughly 70% year-to-date gain. The reversal followed Samsung's record profit and blistering growth forecast, which failed to win over investors in a "sell the news" event amid worries about overspending on AI buildout. The episode highlighted US market sensitivity to Korean chipmakers, which will be tested when SK Hynix begins trading on the Nasdaq on Friday. Geopolitical tensions flared after President Trump's latest calling-off of the US-Iran ceasefire, exacerbating nerves around the AI trade. Additionally, Wall Street strategists including Mike Wilson of Morgan Stanley and Ben Snider of Goldman Sachs predict a rotation back to hyperscalers, citing valuations as chipmakers test upper bounds while some hyperscalers look cheap.