Short selling of SK Hynix stock has skyrocketed to a record high this April, following South Korea’s decision to lift its short-selling ban. The memory chip giant now finds itself at the center of growing investor skepticism due to global trade tensions and cooling enthusiasm around AI-related stocks.

According to Bloomberg, SK Hynix short interest has hit 1.5 trillion won ($1 billion) this month, while foreign investors have dumped over 2.9 trillion won worth of shares. This bearish sentiment stems from uncertainty around future U.S. AI investment and escalating semiconductor tariffs.

Despite an anticipated strong earnings report, analysts warn that SK Hynix may see more selling pressure. The company’s stock is already down 20% from its January high, despite reports that it may overtake Samsung as the top global DRAM supplier.

Experts suggest that even positive results might trigger more profit-taking, as investors look to exit amid heightened volatility in AI chip stocks.