SK Hynix shares surged more than 9% in early trading. This increase follows a more than 27% jump in the company's American Depositary Receipts (ADRs) on the U.S. stock market, driven by heightened investment in artificial intelligence and expectations of a memory supply shortage, which have boosted investor sentiment.
As of 9:08 a.m. on July 15, SK Hynix was trading at 2,089,000 won, up 176,000 won (9.20%) from the previous trading day.
U.S. markets rose overnight as concerns over interest rate hikes eased due to slowing inflation. The Dow Jones Industrial Average gained 0.02%, the S&P 500 rose 0.38%, and the Nasdaq Composite increased by 0.90%.
The Consumer Price Index (CPI) for June in the U.S. rose 3.5% year-over-year, falling short of market expectations of 3.8%. Month-over-month, it dropped by 0.4%, marking the largest decline since April 2020. This alleviated inflation concerns, leading to a decrease in the probability of a rate hike by the Federal Open Market Committee (FOMC) this month from 42% to 17%.
Semiconductor stocks led the market rally, with the Philadelphia Semiconductor Index rising 2.54%. SK Hynix ADRs soared by 27.29%. Micron and SanDisk also saw increases of 4.9% and 5.0%, respectively, boosting overall investor sentiment in the memory sector.
In South Korea, positive forecasts from the securities industry continued. KB Securities maintained a target price of 4.2 million won and a 'buy' rating for SK Hynix. Analyst Kim Dong-won projected that the memory supply shortage would persist at least until 2028, driven by increased investment in AI data centers, stating, "The recent drop in stock prices is a correction due to weakened investor sentiment, presenting a buying opportunity."
As of 9:08 a.m. on July 15, SK Hynix was trading at 2,089,000 won, up 176,000 won (9.20%) from the previous trading day.
U.S. markets rose overnight as concerns over interest rate hikes eased due to slowing inflation. The Dow Jones Industrial Average gained 0.02%, the S&P 500 rose 0.38%, and the Nasdaq Composite increased by 0.90%.
The Consumer Price Index (CPI) for June in the U.S. rose 3.5% year-over-year, falling short of market expectations of 3.8%. Month-over-month, it dropped by 0.4%, marking the largest decline since April 2020. This alleviated inflation concerns, leading to a decrease in the probability of a rate hike by the Federal Open Market Committee (FOMC) this month from 42% to 17%.
Semiconductor stocks led the market rally, with the Philadelphia Semiconductor Index rising 2.54%. SK Hynix ADRs soared by 27.29%. Micron and SanDisk also saw increases of 4.9% and 5.0%, respectively, boosting overall investor sentiment in the memory sector.
In South Korea, positive forecasts from the securities industry continued. KB Securities maintained a target price of 4.2 million won and a 'buy' rating for SK Hynix. Analyst Kim Dong-won projected that the memory supply shortage would persist at least until 2028, driven by increased investment in AI data centers, stating, "The recent drop in stock prices is a correction due to weakened investor sentiment, presenting a buying opportunity."
* This article has been translated by AI.
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