On the 27th, the KOSPI started with a drop of 2.93%. After a significant fall of more than 3% the day before, it remains in a weak position.
The consequences of Samsung Electronics and SK Hynix declining for two straight days following Google’s ‘TurboQuant’ impact. Analysts also link the downward trend to rising oil prices, as hopes for an end to the Iran conflict vanished overnight.
◇‘Tripped Up by TurboQuant’ Samjeonix
As reported by the Korea Exchange on the 27th, Samsung Electronics was being traded at 173,000 South Korean won, reflecting a 3.8% drop in initial trading, while SK Hynix stood at 896,000 South Korean won, experiencing a 3.9% decrease. On the previous day, Samsung Electronics and SK Hynix had both fallen by 4.71% and 6.23%, respectively. This represents the second straight day of declines.
The significant drop today is linked to the continuous effects of Google’s TurboQuant shock. TurboQuant is an advanced AI technology designed for efficient memory usage, recently introduced by Google. It reduces data size to one-sixth of its original form, solving memory limitations that arise when vector search engines—like large language models (LLMs)—access information. This implies that, to achieve the same level of performance, only one-sixth of the current memory capacity is needed for storing data.
This has challenged the conventional formula “AI demand = memory demand,” causing concern in the market that memory demand might decrease. Investor sentiment remains stable today, continuing from yesterday’s pattern. Han Ji-young, a researcher at Kiwoom Securities, said, “The negative view that TurboQuant enables longer conversations with the same amount of memory, suggesting a lower need for memory than anticipated, has affected investor sentiment.”
◇Crude Oil Prices Rise Amid Stalled Peace Talks
U.S. President Donald Trump further fueled market concerns overnight by intensifying the pressure on Iran, saying, “It’s better to take it seriously before it’s too late.”
With challenges in war-related discussions, oil prices increased. Brent crude futures, which serve as the standard for global oil pricing, ended at $108.01 per barrel, marking a 5.8% rise from the prior day. West Texas Intermediate also climbed 4.2% to $94.48 per barrel.
U.S. stock markets also became broadly negative. The S&P 500 ended with a drop of 1.74%, while the Dow Jones and Nasdaq declined by 1.01% and 2.38%, respectively. Significantly, leading semiconductor companies experienced substantial losses. NVIDIA dropped 4.15%, along with SanDisk (11.02%), Micron (6.98%), and AMD (7.46%). Experts believe this is due to increased investment risks in semiconductor stocks after TurboQuant’s announcement, combined with stalled conflict discussions causing investors to take profits.
Wells Fargo Investment’s global equity strategist Doug Biss said to Reuters, “In a more rapid game of ping-pong, it remains unclear who President Trump’s negotiation partner is,” and he added, “Contradictory messages are present, and uncertainty is shaping the current scenario.”
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