Shares of SK Hynix surged 13% to a record high on Monday, driven by strong foreign buying after major U.S. technology firms ramped up investment plans for artificial intelligence (AI) data centres.
The South Korean chipmaker outperformed larger rival Samsung Electronics, whose gains were tempered by concerns over a potential strike by unionised workers seeking a larger share of AI-driven profits.
SK Hynix shares closed up 12.52% at a record 1,447,000 won (US$985.29) per share, outpacing Samsung Electronics’ 5.44% gain as well as the broader market’s 5.1% rise.
The rally comes amid growing expectations that the current chip upcycle could last longer than previous cycles. Ryoo Sang-dai noted that the semiconductor boom may prove more sustained, echoing outlooks shared by both SK Hynix and Samsung Electronics during recent earnings calls.
Momentum in the sector has been fuelled by aggressive AI spending from major U.S. technology companies, including Alphabet, Microsoft, Meta and Amazon. Combined capital expenditure is expected to exceed US$700 billion this year, up from around US$600 billion previously.
In particular, Microsoft and Meta have outlined higher-than-expected capital spending plans, partly driven by surging memory chip prices, while maintaining confidence in their AI investments.
“I think everybody knows that the cost of these components, particularly memory, has skyrocketed. We are just in a stage where there’s just not enough capacity for the amount of demand,” Amazon said on an earnings conference call last week.
Reuters
