The CSOP SK Hynix Daily (2x) Leveraged Product tumbled 5.38% during Monday's morning session in Hong Kong, reflecting amplified losses in the underlying shares of South Korean chipmaker SK hynix.
The decline came after NVIDIA announced a massive, long-term AI memory supply deal with SK hynix, valued at up to US$500 billion. While the headline figure appears positive, the agreement's multi-year timeframe and inclusion of a massive data center buildout may have disappointed investors who were expecting more immediate revenue boosts. The deal also included news that NVIDIA will invest US$1 billion in South Korean cloud company Naver, suggesting a broader allocation of resources.
Additionally, a separate announcement that rival Samsung Electronics signed a US$200 billion memorandum of understanding with Broadcom to expand memory and foundry collaboration likely intensified competitive pressure on SK hynix, despite its leadership position in high-bandwidth memory (HBM). The leveraged product's decline reflects a market reassessment of SK hynix's near-term growth outlook amid these developments.