South Korea’s Kospi rose 6.6% on Wednesday, led by chipmakers after SK Hynix reported stronger-than-expected quarterly results and announced a major shareholder payout, reviving investor appetite for artificial intelligence stocks.
SK Hynix climbed 11%, while Samsung Electronics gained 9%. The rally extended into U.S. premarket trading, where Micron Technology and SanDisk each rose 4%.
Earnings beat and payout plan
SK Hynix reported September-quarter operating profit of 83.3 trillion won ($62.5 billion), a sevenfold increase that exceeded analyst forecasts by more than 7%, according to Bloomberg. The memory chipmaker also announced plans to return another 60 trillion won ($45 billion) through buybacks and dividends during the remainder of the fiscal year.
Memory supply remains tight
SK Hynix said conventional and high-bandwidth memory capacity is sold out through 2029, with shortages expected to persist through at least 2030, Bloomberg reported. The results suggest tight memory supplies continue to support chipmakers’ earnings even as concerns about the cost and funding of AI infrastructure remain a focus for investors.
The gains build on a recovery in AI stocks over the past few days following weeks of pressure, when investors questioned the AI infrastructure buildout.
Bitcoin also saw a slight bounce, rising to $81,700.
