Key Highlights

Google introduced TurboQuant, a breakthrough algorithm capable of cutting AI memory demands by as much as six-fold
Samsung’s stock declined 4.8% while SK Hynix experienced a 6.23% drop following the announcement
American memory manufacturers including Micron, SanDisk, and Western Digital saw declines ranging from 1.6% to 3.5%
Industry experts characterize the market reaction as temporary profit-taking rather than fundamental demand weakness
The TurboQuant technology will be officially showcased at the ICLR 2026 conference scheduled for April

Shares of memory chip manufacturers Samsung and SK Hynix experienced significant declines on Thursday following Google’s announcement of TurboQuant, a revolutionary AI memory compression technology.

Samsung’s stock retreated 4.8% while SK Hynix saw a steeper 6.23% decline during trading on the Korea Exchange. The two companies ranked among the heaviest weights on the KOSPI index, which tumbled as much as 3% during the session.

Samsung SDI Co., Ltd., 0L2T.L

The electrical and electronics sector benchmark also experienced pressure, declining 4.76% to settle at 3,592.22.

The weakness in Korean tech stocks mirrored overnight losses among U.S.-based memory chip companies. Micron Technology retreated 3.40%, SanDisk decreased 3.50%, and Western Digital fell 1.63% during New York Stock Exchange trading.

Google’s research team announced TurboQuant in recent days. The innovative algorithm enables AI systems to process up to six times greater capacity while utilizing identical memory resources.

According to Google, the breakthrough also enhances vector search functionalities that drive leading search platforms.

Market participants expressed concern that reduced memory requirements might diminish demand for the sophisticated memory chips that Samsung and SK Hynix provide to data center operators.

Both manufacturers have experienced substantial growth from AI-related demand. This surge had been creating memory chip supply constraints in recent periods and powered significant stock price appreciation for both companies.

Industry Experts Challenge Negative Interpretation

The majority of financial institutions interpret the decline as temporary profit-taking. Analysts contend the technology may actually bolster memory demand in the longer term.

Surim Lee, an equity research analyst at DS Investment & Securities, observed that technologies designed to reduce memory consumption typically expand aggregate demand instead of contracting it. Lee emphasized that TurboQuant’s development stems from memory constraints in AI infrastructure already reaching critical thresholds.

Lee further explained that efficiency improvements generate a virtuous cycle where reduced costs drive increased utilization and capital reinvestment, rather than diminished overall demand.

Han Ji-young of Kiwoom Securities suggested that as AI systems achieve greater efficiency and capability, total AI demand could counterintuitively grow.

Han also indicated the pronounced stock decline probably reflected investor exhaustion following the early-year memory price surge, with the TurboQuant disclosure providing justification for profit realization.

Past Trends Support Optimistic Outlook

Historically, technological innovations that enhance resource efficiency have frequently catalyzed accelerated industry expansion and elevated aggregate demand, rather than contraction.

Heo Jae-hwan of Eugene Investment & Securities suggested server and semiconductor categories linked to AI, where supply constraints already exist, are positioned to demonstrate greater resilience compared to other sectors.

Google announced it will officially unveil TurboQuant at the ICLR 2026 conference taking place in April.

Samsung and SK Hynix concluded trading at 1,801,000 won and 9,330,000 won respectively on the Korea Exchange on March 26.

The post Google’s TurboQuant AI Tech Triggers Steep Decline in Samsung and SK Hynix Stock Prices appeared first on Blockonomi.

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Filed under: Bitcoin - @ March 26, 2026 10:26 am