Bearish bets on South Korean memory chipmaker SK Hynix have surged to unprecedented levels, as investors grapple with rising trade tensions and renewed skepticism over the AI-driven chip rally, according to a report by Blooberg.
The spike in short interest follows the South Korean government’s recent decision to lift its short-selling ban, prompting traders to pounce at what many are calling a vulnerable moment for the stock.
The report cites data from Bloomberg as showing that short positions on SK Hynix have already reached KRW1.5tn ($1bn) in April – putting the stock on track for its highest monthly short volume ever. Net selling by foreign institutions has also accelerated, with more than KRW2.9tn of SK Hynix stock offloaded this month.
The pressure comes despite expectations that SK Hynix will post strong earnings this week – possibly even overtaking Samsung Electronics as the top global DRAM supplier for the first time.
“The bearishness is likely driven by uncertainty in the long-term outlook for US AI capital expenditure due to ongoing tariff uncertainties in the semiconductor sector,” said Gary Tan, a portfolio manager at Allspring Global Investments. Among memory makers, “SK Hynix is most exposed,” he noted.
The company’s two-year rally – fueled by bullish projections around AI data infrastructure and memory demand – has hit a wall in 2025. Its shares are down 20% from January highs, amid growing fears of a tariff-fuelled slowdown and a broader cooling of investor enthusiasm for AI chipmakers, triggered in part by cost-disruptive breakthroughs like DeepSeek.
Even as SK Hynix prepares to announce what is expected to be a blockbuster quarter, sentiment remains fragile.
“Results are not such an important factor for SK Hynix right now,” said Jung In Yun, CEO of Fibonacci Asset Management Global. “If the company reports strong earnings, investors are likely to cash out further, as it could offer a good opportunity to take profit.”
