Korean memory makers sold off after DeepSeek released a leaner AI model, but analysts say the drop is mostly mood, not a real hit to memory demand.

• DeepSeek's new V4.1 Flash model cuts the high-bandwidth memory a single model needs by about 75%, and SSD needs even more.
• SK Hynix and Samsung fell sharply, dragging Korea's market down, while Tokyo stocks also slid.
• Analysts argue faster, cheaper AI means more usage overall, so total memory demand should keep growing.
• Bigger pressure on tech stocks came from Fed rate worries and renewed credit fears around big cloud companies, plus higher oil prices on Middle East tension.
• Memory is still in short supply — tight enough to delay iPhone chip packaging and push Chinese AI chip prices up, with the squeeze expected to last into 2027.

Outlook: Memory shares may stay choppy in the near term, but the supply shortage and rising AI demand point the other way over the next year or two.