Samsung Electronics Jumps 5%, SK Hynix Rallies More Than 7% as Chip Stocks Surge
Summary
- Overnight gains in U.S. semiconductor stocks and AI infrastructure shares helped fuel a sharp rise in South Korea's large-cap chip stocks.
- July U.S. consumer price index (CPI) data matched expectations, pushing the odds of a September interest-rate hold to 60.1% and supporting investor sentiment toward technology stocks.
- Morgan Stanley switched its top pick to Samsung Electro-Mechanics and raised its target price, citing potential strength in MLCC prices and improving ABF substrate demand.
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Samsung Electro-Mechanics also climbs 9.89%
Samsung Electronics Co. and SK Hynix Inc. led gains in South Korean semiconductor shares early on August 13, tracking an overnight rally in U.S. chipmakers and AI infrastructure stocks.
The move followed advances in semiconductor names such as Micron Technology Inc. and Nvidia Corp., as well as AI infrastructure stocks including CoreWeave Inc. U.S. technology sentiment also got a lift after July consumer price index data matched market expectations, increasing the odds that the Federal Reserve will leave interest rates unchanged in September.
As of 9:12 a.m., Samsung Electronics was trading at 268,500 won, up 5.48% from the previous session. SK Hynix jumped 7.25% to 1.611 million won. SK Square Co. rose 10.35% to 1.128 million won, while Samsung Electro-Mechanics Co. climbed 9.89% to 1.49 million won.
The rally in South Korea's chip heavyweights came as investors piled into major U.S. semiconductor stocks overnight and growing expectations for a rate hold supported domestic equities. U.S. stocks ended mixed, but gains in AI and data-center infrastructure shares helped extend momentum across technology names.
The Dow Jones Industrial Average closed 0.04% lower, while the S&P 500 and Nasdaq Composite rose 0.26% and 0.54%, respectively. Among chip stocks, Micron gained 4.9%, SanDisk advanced 5.8% and Nvidia added 3.0%. AI infrastructure shares also surged, with CoreWeave up 19.3% and Super Micro up 19.0%.
Expectations for a September rate hold also supported appetite for technology shares. U.S. headline and core CPI for July rose 3.4% and 2.5% from a year earlier, respectively, both in line with forecasts. The probability of the Fed keeping rates unchanged in September rose to 60.1%.
Samsung Electro-Mechanics also appeared to benefit after Morgan Stanley switched its top pick to the company from Samsung Electronics on August 12 and raised its target price to 2.62 million won from 2.56 million won. The firm cited the potential for stronger multilayer ceramic capacitor, or MLCC, prices and improving demand for Ajinomoto build-up film, or ABF, substrates.
Kang Kyung-ju, Hankyung.com reporter, qurasoha@hankyung.com
Korea Economic Daily
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