A report of a production slowdown at SK Hynix sparked a broad selloff in chip stocks Friday, sending the Nasdaq 100 down nearly 3% and pushing Bitcoin toward $63,000. The South Korean memory-chip maker disclosed that output will be reduced in the coming months, citing weaker demand and inventory adjustments. The news hit an already skittish tech sector, and the selloff quickly spread to risk assets, including cryptocurrencies.
The SK Hynix report
SK Hynix, one of the world's largest suppliers of DRAM and NAND flash memory, told investors that it would slow production lines at its main fabrication plants. The company pointed to a glut in the memory market and softer-than-expected orders from smartphone and server customers. The specific timeline and scale of the cuts weren't detailed, but the announcement was enough to spook traders.
Shares of SK Hynix fell more than 6% in Seoul trading. Other chipmakers followed: Samsung Electronics, Micron Technology, and even Taiwan Semiconductor Manufacturing Co. saw their shares drop sharply. The Philadelphia Semiconductor Index, a benchmark for the industry, shed more than 4% on the day.
Nasdaq 100 takes a hit
The broader tech-heavy index couldn't escape the carnage. The Nasdaq 100 closed down about 2.9%, its worst single-day decline in weeks. Heavyweights like Apple, Nvidia, and AMD all posted losses. The selling was broad, with every sector of the index in the red by the afternoon.
This isn't the first time a chipmaker's outlook has rattled the market this year. But the scale of the reaction — a near-3% drop in a major index — shows how sensitive investors are to any sign of weakness in the semiconductor supply chain. The Nasdaq 100 had been hovering near record highs just days earlier.
Bitcoin's move toward $63,000
Bitcoin didn't escape the rout. The largest cryptocurrency fell in tandem with equities, sliding toward the $63,000 level. It's a familiar pattern: when tech stocks sell off, Bitcoin often follows, treated more as a risk asset than a safe haven. The move erased gains from earlier in the week, when Bitcoin had briefly touched $66,000.
Ether and other major altcoins also dropped, though losses were slightly less severe. The total crypto market cap fell by about 4% on the day, according to CoinGecko data. Some traders pointed to the correlation with equities as a sign that crypto still hasn't broken its tie to traditional risk markets.
What to watch next
Markets will be watching for any further updates from SK Hynix when Asian trading resumes Monday. If the company details a deeper cut, the selloff could extend. On the other hand, some analysts are already calling the reaction overdone, noting that the memory market is cyclical and that SK Hynix's move is a normal part of the industry's rhythm.
For now, the Nasdaq 100 is left nursing its wounds, and Bitcoin is testing support near $62,500. The next few days will show whether this is a one-day panic or the start of a broader correction. The SK Hynix news broke late in the Asian session, so full reaction from U.S. markets will come Monday.
