Why Did Nanya Technology's Stock Plummet Despite Strong Earnings? Chen Chong-ming Blames 'Two Korean Giants': Is the Memory Market Reversing?

On June 16, Taiwan's stock market closed down 6.61 points at 45,624.98, a 0.01% decline. Memory-related stocks faced profit-taking, with Nanya Technology plunging 8.73% to NT$439 and Winbond closing at NT$136.5, down 8.08%. In response, renowned investor Chen Chong-ming posted on Facebook expressing concern: despite Nanya's explosive earnings and extremely low P/E ratio, its stock underperformed. He attributed the drop to South Korea's market crash—Samsung fell 8.77%, and SK Hynix plummeted 11.53%—raising questions about whether the memory sector is reversing.

South Korea's market triggered another circuit breaker on the 16th, with SK Hynix falling over 11% during the session and Samsung Electronics down more than 7%. This volatility spilled over to Taiwan's memory-related stocks, including Nanya and Winbond, both down over 6%, while Powerchip declined 2%.

Financial expert Juan Mu-hua noted that U.S. memory stocks also fell collectively, describing the pattern of sharp daily swings as purely speculative and disconnected from fundamentals—an unprecedented phenomenon. He warned that memory stocks are now 'holding the Korean market hostage,' and their volatility is transmitting to U.S. and Taiwan markets. Global equities are now abnormally tied to just a few stocks—SK Hynix, Samsung, Micron, and SanDisk—a situation never seen before.

Chen highlighted Nanya's 8.73% plunge, asking how investors should survive when earnings are strong and valuations low. He blamed Korea's market collapse and noted he had already warned on June 13 that Nanya's stock was no longer cheap and high-level risks should be monitored.

Additional exclusive reports from Storm Media: - U.S. memory stocks surge and crash—should Taiwan worry? Juan Mu-hua warns: 'Markets now hostage to just four stocks,' calling it a 'once-in-a-lifetime' event. - NVIDIA's Jensen Huang arrives in Japan—media reveals talks focus not on AI chips or memory, but on a new industry that could define the next AI era. - SK Hynix CEO warns of 'the worst memory shortage ever' by next year, with supply-demand imbalance unresolved beyond 2030.