Log In Get Started
Stock Markets March 25, 2026

Samsung and SK Hynix Shares Drop After Google Unveils AI Memory Compression Tool

Markets react to TurboQuant announcement as global memory suppliers and related U.S. peers retreat

By Sofia Navarro MU SNDK
Samsung and SK Hynix Shares Drop After Google Unveils AI Memory Compression Tool
MU SNDK

Shares of South Korea’s largest memory manufacturers fell sharply after Google researchers introduced TurboQuant, an algorithm Google says can reduce AI working memory needs while preserving performance. The announcement coincided with declines among U.S. memory-equipment peers and knocked the KOSPI lower.

Key Points

  • Google researchers introduced TurboQuant, an algorithm said to reduce AI working memory needs without harming performance.
  • Samsung and SK Hynix shares dropped 4.8% and 5.9% respectively, contributing to a KOSPI decline of up to 3%.
  • U.S. memory-related peers including Micron, SanDisk, Western Digital and Seagate fell between roughly 3% and 6%, indicating a cross-market reaction.

Summary

Shares of Samsung Electronics and SK Hynix tumbled on Thursday following the release of details from Google researchers about a new memory-compression algorithm called TurboQuant. The announcement coincided with losses among U.S. memory-related stocks and contributed to a pullback in South Korea’s KOSPI index.

Market moves

Samsung (KS:005930) slid 4.8% and SK Hynix Inc (KS:000660) fell 5.9% on Thursday, making both among the heaviest downward contributors to the KOSPI, which dropped by as much as 3% at one point.

Those declines followed overnight weakness in U.S. memory-sector names. Micron Technology Inc (NASDAQ:MU), SanDisk Corporation (NASDAQ:SNDK), Western Digital (NASDAQ:WDC) and Seagate Technology PLC (NASDAQ:STX) were reported down in a range of about 3% to 6%.

What TurboQuant is claimed to do

Google researchers described TurboQuant as an algorithm that can compress the working memory requirements of artificial intelligence models without reducing their performance. In addition to lowering memory footprints, the researchers said the approach can improve vector search processes that underpin major search capabilities.

Implications for demand

If TurboQuant proves viable and is widely adopted, a structural decrease in AI memory requirements could signal reduced industry demand for advanced memory chips. That prospect helps explain the immediate market reaction among major memory suppliers and their peers.

AI-driven demand had been cited as a factor behind recent supply tightness for memory chips and supported a strong run-up in the shares of Samsung and SK Hynix. Both firms are among the largest, most advanced producers of memory chips and are primary suppliers to the AI sector.

Timing

Google said it will present TurboQuant at the ICLR 2026 conference in April.

Note on coverage: The article reports market reactions and the claims made by Google researchers about TurboQuant as presented by the researchers. It does not evaluate the technical merits or adoption likelihood of the technology beyond those reported statements.

Risks

  • If TurboQuant is technically viable and widely adopted, demand for advanced memory chips could slow, affecting semiconductor and hardware suppliers - semiconductor sector, data center hardware demand.
  • Market losses may continue if investors reassess AI-driven memory demand assumptions, potentially impacting related equities and index performance - equity markets, index volatility.
  • Uncertainty remains over the real-world performance and adoption timeline for TurboQuant; the degree of impact on chip demand depends on technical validation and industry uptake - technology adoption risk.

More from Stock Markets

Nvidia-Backed Reflection AI Seeks About $25 Billion Valuation in New Funding Round Mar 25, 2026 Asian Markets Slip as Tehran Rejects Direct Talks, Energy Supply Fears Persist Mar 25, 2026 Reflection AI in talks for $2.5 billion financing at $25 billion pre-money valuation Mar 25, 2026 Henkel Nears Agreement to Acquire Olaplex, Sources Say Mar 25, 2026 Lynas and LS Eco Energy to Build Rare-Earth Metal Plant in Vietnam Mar 25, 2026