Samsung Electronics, SK Hynix Rebound 8%, 10% as Memory Stocks Shake Off Meta Concerns

Samsung Electronics jumps 8%, SK Hynix 10% on July 3

Sentiment improves as Japan's Kioxia surges

Samsung-Anthropic chip talks add support

Focus turns to Samsung's preliminary second-quarter results due July 7

Operating profit forecast in the 80 trillion-won range despite bonus costs

Brokerages expect strong industry conditions and earnings to continue

Samsung Electronics Co. and SK Hynix Inc. rebounded sharply on July 3, brushing aside concerns about the memory-chip cycle. The gains came as shares of Japanese NAND flash maker Kioxia Holdings Corp. surged and reports emerged that Samsung is in talks with Anthropic, developer of the Claude AI model.

As brokerages argue that worries over a semiconductor slowdown tied to Meta Platforms Inc.'s cloud push are overdone, investors are turning their focus to Samsung's preliminary second-quarter earnings due July 7.

Samsung Electronics closed 8.22% higher at 309,500 won ($224), according to Korea Exchange data. SK Hynix rose 10.88% to 242,500 won ($176). Both stocks climbed even more during the session, with Samsung up as much as 9% and SK Hynix as much as 12%.

Samsung shares gained traction after foreign media reported that Anthropic is discussing production of its own AI chips with the company. Anthropic is reviewing a plan to use Samsung Foundry's 2-nanometer process and advanced packaging facilities. The prospect of winning Anthropic as a customer, alongside Tesla Inc., Nvidia Corp. and Apple Inc., has fueled expectations that Samsung's foundry business could return to profit.

Improving sentiment toward South Korea's memory-chip makers was also linked to Kioxia's more than 10% rebound on the Tokyo Stock Exchange, driven by bargain buying.

Samsung Electronics and SK Hynix had been under pressure until recently. As of the previous session, the stocks had fallen 13.67% and 16.87%, respectively, over the past week. The declines came even after Micron Technology Inc. reported better-than-expected earnings, as concern grew that chip demand could weaken following reports that Apple may buy Chinese-made memory chips and that Meta is preparing to enter cloud services.

Still, some analysts say Apple may struggle to buy Chinese semiconductors as Donald Trump's administration maintains its hard-line stance toward China. They also say Chinese memory makers remain well behind the top three producers because supplies of advanced manufacturing equipment, including extreme ultraviolet lithography tools, are not flowing smoothly.

Lee Young-won, an analyst at Heungkuk Securities, said the U.S. strategy of blocking China's semiconductor supply chain means any such move would require consultation with Washington. He also said competition with Chinese memory makers in high-value products is unlikely to intensify.

Brokerages have also described as overblown the view that Meta's plan to sell idle computing capacity from its own data centers signals weakening AI demand.

Moon Jun-ho, an analyst at Samsung Securities, said it is excessive to interpret the situation as evidence of oversupply in AI capacity. Pursuing additional revenue through short-term leasing is rational and would improve the return on investment for AI capital spending, he said. Meta would not have raised its capital-expenditure plan in April if it had expected spare capacity to become an issue, he added.

Investors are now watching Samsung's preliminary second-quarter results due July 7. The key question is whether the company can post earnings strong enough to reinforce the view that the AI cycle remains solid. Brokerages are projecting second-quarter operating profit in the 80 trillion-won range, roughly in line with the consensus estimate of 85 trillion won ($61.6 billion).

Song Myung-seop, an analyst at iM Securities, said the recent share-price surge has led to a short-term correction. The medium-term uptrend remains intact, however, as industry conditions and earnings strength continue and growth in global liquidity is set to resume in the second half, he added.

Seo Seung-yeon, an analyst at DB Securities, said Samsung's Device Solutions division should deliver solid earnings thanks to a strong rise in memory-chip prices despite bonus-related provisions. Recent weakness in the shares reflected concerns about Meta's cloud push and the possibility of Apple using Chinese memory chips, but memory-market conditions remain firm, she said.

Ko Jeong-sam, Hankyung.com reporter, jsk@hankyung.com