SK Hynix shares surged nearly 13% in Seoul on Wednesday as renewed optimism over artificial intelligence (AI) demand and gains in US technology stocks lifted sentiment across South Korea’s semiconductor sector.
The rally followed stronger risk appetite in global markets after softer-than-expected US inflation data supported expectations that the Federal Reserve could take a less aggressive approach on interest rates. The S&P 500 and Nasdaq also advanced overnight, helped by strong bank earnings and cooling inflation pressures.
South Korean chip stocks gained broadly, with Samsung Electronics rising nearly 8% while semiconductor equipment maker Hanmi Semiconductor jumped about 25% in early trade.
Investors have recently been concerned about a possible slowdown in memory earnings growth as chip price increases moderate in the second half of 2026 and major cloud service providers reduce capital spending. However, analysts remain optimistic that structural demand from AI applications will keep supply conditions tight.
Kim Sunwoo, a senior analyst at Meritz Securities, said suppliers of DRAM chips were currently meeting only about 75% to 80% of demand as shortages intensified in the second half of 2026.
That fulfilment rate could fall to the 60% range in 2027, Kim said, adding that suppliers would still only be able to meet around 70% of demand even after excluding more speculative orders.
“With supply shortages set to deepen, memory prices and earnings are likely to continue improving, supporting a strong rebound in the share price,” Kim said.
HSBC said improving profitability of AI services should continue supporting cloud spending, while the shift towards longer-term supply agreements could provide better earnings visibility for the semiconductor industry.
SK Hynix Chief Executive Kwak Noh-jung previously said the global memory industry could face its worst-ever supply shortage in 2027, with demand expected to exceed production capacity despite ongoing expansion efforts.
