SK hynix eases AI peak fears, pushing KOSPI above 6,000
Summary
KOSPI rose in Seoul Wednesday, closing above 6,000 as SK hynix’s outlook for semiconductor shortages through 2030 and its record earnings eased concerns about the AI boom. The index gained 6.63 percent to 6,012.44, led by chip stocks. SK hynix also announced a 100 trillion won shareholder return plan, while foreign and institutional investors bought shares and retail investors sold. The Kosdaq rose 3.69 percent to 771.28.
Key Facts
- SK hynix reported third-quarter revenue of 104.6 trillion won before the market opened.
- SK hynix said its DRAM and high-bandwidth memory production capacity was effectively booked.
- Foreign investors were net buyers of 815.8 billion won in KOSPI shares, while institutional investors bought 960.8 billion won and retail investors sold 1.8 trillion won.
- The buy-side sidecar was triggered at 9:54 a.m. after the benchmark opened 2.33 percent higher.
- The won closed at 1,337.7 per dollar, weakening 14 won from the previous session.
KOSPI is displayed on the board in the dealing room of Hana Bank in Seoul, Wednesday. The benchmark index closed at 6,012.44, up 6.63 percent from the previous session. Yonhap
KOSPI rebounded above the 6,000 mark Wednesday, as SK hynix eased fears that the artificial intelligence (AI) boom is nearing its peak with a forecast of semiconductor shortages through 2030, record earnings and a sweeping shareholder return plan.
KOSPI closed at 6,012.44, up 6.63 percent, led by chip heavyweights. The benchmark index opened 2.33 percent higher, triggering a buy-side sidecar at 9:54 a.m. for the second consecutive day.
SK hynix rose 10.89 percent to close at 1,487,000 won ($1,110.53), while Samsung Electronics climbed 9.01 percent to 242,000 won.
Foreign and institutional investors were net buyers of 815.8 billion won and 960.8 billion won worth of shares, respectively, on KOSPI, while retail investors were net sellers of 1.8 trillion won.
Before the market opened Wednesday, SK hynix reported third-quarter revenue of 104.6 trillion won and unveiled a 100 trillion won shareholder return plan.
During its earnings call, the chipmaker projected that semiconductor shortages would persist through 2030, saying its DRAM and high-bandwidth memory production capacity is effectively booked.
The outlook, underpinned by firm customer demand and supply commitments, helped ease concerns about the sustainability of the memory chip boom, analysts said. A recent sharp sell-off in semiconductor stocks had been fueled by fears that the boom could run out of steam within a year or two, despite strong earnings.
"SK hynix demonstrated Wednesday how robust demand is translating into higher memory prices, stronger operating profits and greater shareholder returns," said Lee Jae-won, an analyst at Yuanta Securities.
Overnight gains on Wall Street also lifted sentiment, with the Nasdaq rallying amid expectations of a potential initial public offering by Anthropic and news of Broadcom's $63 billion AI chip deal with the company.
Technology hardware stocks also advanced. Samsung Electro-Mechanics jumped 8.74 percent following strong third-quarter earnings, while ISU Petasys and Simmtech gained 8.76 percent and 8.79 percent, respectively.
Physical AI-related stocks also rallied, buoyed by news that Madison Huang, the eldest daughter of Nvidia CEO Jensen Huang, will visit Korea next month. Hyundai Mobis gained 5.86 percent, Rainbow Robotics surged 15.08 percent and Robotis climbed 9.76 percent.
The tech-heavy Kosdaq rose 3.69 percent to close at 771.28.
The won closed at 1.337.7 per dollar, weakening 14 won from the previous session.
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