SK Hynix-triggered semiconductor plunge... Uncertainty expands with surging oil prices and interest rates

Summary

Park Myung-suk analyzes a semiconductor sell-off triggered by SK Hynix's collapse and compounded by spiking oil prices and hawkish Fed comments. He argues the drop is technical, driven by ADR arbitrage and leverage unwinding, while AI demand and hyperscaler capex remain robust. He highlights positive signals such as hedge funds buying semis, Apple reaching all-time highs, and returning crypto inflows, and advises that the US market correction presents buying opportunities in AI semiconductors.

• SK Hynix's plunge was largely due to a suggested rotation trade (sell local shares, buy ADR) and leverage unwinding, not fundamentals.
• Oil prices surged after Trump claimed the US would charge a 20% toll for Strait of Hormuz passage, adding geopolitical uncertainty.
• Fed's Waller warned of potential rate hikes if inflation persists, raising bond yields and pressuring equities.
• Morgan Stanley projects hyperscaler capex of $1.2 trillion by 2027, signaling sustained AI investment.
• Meta expanded a data center project from $10 billion to $50 billion, reinforcing AI infrastructure demand.
• Apple hit an all-time high as a defensive play during the AI-driven sell-off.
• Crypto funds recorded their first weekly net inflow since May, suggesting returning liquidity.
• Park Myung-suk views the US market sell-off as a pre-earnings correction and maintains a positive outlook on semiconductors.