SK Hynix, Samsung stock rally follows renewed AI chip buying
SK Hynix and Samsung rose more than 20% in Seoul as Amazon and Microsoft results revived investor demand for AI chip stocks.
By Dev Ramirez · Crypto Correspondent
· 3 min read
The SK Hynix Samsung stock rally gave retail investors a clear signal on Friday: AI enthusiasm is still powerful enough to move chip stocks across borders. Shares of South Korea’s two major chipmakers climbed more than 20% in Seoul, CNBC reported, after U.S. tech earnings helped restore confidence in spending on artificial intelligence infrastructure.
The move followed a strong overnight rally in U.S. semiconductor shares. CNBC reported that the iShares Semiconductor ETF, known by its ticker SOXX, rose more than 8% as investors returned to chipmakers tied to AI demand. An ETF lets investors buy a basket of investments in one trade, so a sharp move in SOXX can show broad demand for semiconductor exposure rather than buying in just one company.
For everyday investors, the key point is how quickly sentiment can swing in a theme like AI. Chipmakers sold off earlier in the week on worries about rich AI valuations and rising competition from Chinese memory-chip companies, CNBC reported. Friday’s rebound showed that stronger earnings from major cloud customers can quickly pull attention back to demand for chips used in data centers.
Why did SK Hynix and Samsung shares jump?
CNBC tied the gains to results from Amazon and Microsoft, two of the biggest buyers of cloud and AI computing capacity. Amazon rose more than 9% in extended trading after second-quarter revenue topped analysts’ expectations, helped by strength in its cloud-computing business, according to CNBC.
Microsoft had already climbed 16% in Thursday’s regular session after reporting Azure cloud growth that came in faster than expected, CNBC reported. Azure is Microsoft’s cloud platform, and faster growth there can suggest stronger demand for the servers, networking gear and chips that power AI tools.
That connection matters for companies such as SK Hynix and Samsung because memory chips are core parts of AI data-center systems. When investors believe cloud companies are still spending heavily on AI infrastructure, they often bid up suppliers viewed as beneficiaries of that spending.
Asian chip stocks rose across the board
The rally was not limited to South Korea. CNBC reported that LG Innotek advanced 11.2%, while Seoul Semiconductor gained 7.8%.
Japanese semiconductor names also joined the move. Advantest climbed nearly 18%, Tokyo Electron gained almost 9%, Disco rose more than 13%, Lasertec advanced more than 12% and Renesas Electronics added more than 10%, according to CNBC.
SoftBank Group, which CNBC described as an AI proxy because it owns Arm, also rose more than 9%. Arm designs chip technology used across smartphones, servers and other computing devices.
The rebound does not erase the risks that hit chip stocks earlier in the week. CNBC reported that investors had been concerned about elevated AI stock valuations and tougher competition from Chinese memory-chip makers. Friday’s trading showed that strong cloud results from U.S. tech giants can still reset the mood quickly, especially in stocks tied closely to the AI buildout.
This story draws on original reporting from CNBC.
