Samsung Electronics, SK Hynix Jump 6.16% and 4.3% in Premarket on Labor Deal, Nvidia Earnings
Summary
- Shares of Samsung Electronics and SK Hynix opened sharply higher in premarket trading on Nextrade, rising 6.16%% and 4.3%%, respectively.
- Investor sentiment toward semiconductors recovered after Samsung Electronics labor-management talks produced a tentative agreement ahead of a planned general strike.
- Nvidia supported the rally after posting a 12th straight record quarterly revenue and earnings that topped market consensus.
Forecast Trend Report by Period
Samsung Electronics Co. and SK Hynix Inc. jumped in premarket trading on May 21.
As of 8:05 a.m., Samsung Electronics was trading at 293,000 won on Nextrade's premarket platform, up 6.16% from the previous session. SK Hynix was up 4.3% at 1.82 million won.
Investor sentiment recovered after Samsung Electronics reached a tentative wage agreement with its labor union a day before a planned strike. Late on May 20, management and labor reached a provisional deal just 90 minutes before a planned general strike. If union members approve the agreement in a vote, Samsung will avoid what would have been the largest strike in the company's history.
The market had been concerned that an actual walkout by Samsung's union could cause losses of as much as 100 trillion won and damage the semiconductor ecosystem and supply chain. That had weighed on broader sentiment toward chip stocks.
Nvidia's strong earnings growth also supported the gains.
Nvidia said on May 20 that first-quarter revenue for its fiscal year, which covers February through April, rose 20% from the previous quarterly record of $68.13 billion to $81.62 billion. That marked a 12th straight quarterly revenue record.
Revenue rose 85% from a year earlier and topped the $78.85 billion market consensus compiled by London Stock Exchange Group, or LSEG. Adjusted earnings per share came in at $1.87, above Wall Street expectations of $1.76.
Nvidia said second-quarter revenue would reach $91 billion. That forecast excludes data-center revenue tied to the China market.
Chief Executive Officer Jensen Huang said the buildout of AI factories, which he described as the largest infrastructure expansion in human history, is accelerating at a striking pace. He added that Nvidia is the only scalable platform that runs across every cloud, supports every frontier and open-source model, and spans everything from hyperscale data centers to edge computing.
Jung-dong Noh, Hankyung.com reporter, dong2@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
