Samsung Electronics and SK Hynix are experiencing a simultaneous rise in stock prices. This uptick follows a reduction in concerns over credit risks associated with AI-related companies in the U.S. stock market, leading to a wave of bargain hunting in semiconductor stocks after recent declines.
As of 12:56 PM on October 16, Samsung Electronics shares were trading at 218,500 won, up 8,500 won (4.05%) from the previous trading day. SK Hynix shares rose by 39,000 won (3.09%) to 1,301,000 won.
Recently, the domestic stock market faced sharp corrections, particularly in semiconductor stocks, due to growing skepticism about the profitability of AI investments and concerns over the financial health of related companies. The KOSPI index fell for seven consecutive trading days, significantly dampening investor sentiment. However, a rebound in the U.S. stock market has sparked efforts to recover from these losses.
On October 15, the Dow Jones Industrial Average closed up 1.08% in the U.S. market. The S&P 500 and Nasdaq Composite also rose by 0.33% and 0.08%, respectively, marking gains across all three major indices.
While U.S. semiconductor stocks generally showed weakness, the extent of their declines lessened compared to earlier in the day. Micron Technology saw a 1.87% increase, while Nvidia (-1.84%), AMD (-1.50%), and Broadcom (-0.55%) experienced declines. SK Hynix's American Depositary Receipts (ADRs) fell by 0.99%, and the Philadelphia Semiconductor Index closed down 0.88%.
One factor contributing to the shift in market sentiment was a statement from Jensen Huang, CEO of Nvidia. He noted that the competitiveness of AI infrastructure company CoreWeave is continuously improving, along with its financial situation.
Previously, concerns had arisen regarding CoreWeave's financial health due to significant borrowing for data center expansion. This led to widespread apprehension that increased investments in AI infrastructure could burden the profitability and financial stability of related companies.
However, following Huang's positive assessment, CoreWeave's stock, which had plummeted nearly 10% during the day, reversed course and ended up 5.9%. This easing of credit risk concerns for AI-related companies appears to have positively influenced investor sentiment across the semiconductor sector.
Additionally, strong performance from Taiwan's TSMC supports expectations for the semiconductor industry. TSMC reported third-quarter revenue of $46.72 billion, a 41.2% increase year-over-year, with net income rising by 68.7%. This indicates sustained demand for advanced semiconductors and ongoing growth expectations for the AI industry.
Nonetheless, the profitability pressures and credit risks associated with large-scale investments in AI-related companies have not been fully resolved. Given the continued decline in major U.S. semiconductor stocks and the Philadelphia Semiconductor Index, it remains to be seen whether the rebound in domestic semiconductor stocks will lead to a sustained upward trend.
Market analysts suggest that the recent oversold perception following consecutive declines, coupled with a recovery in U.S. investor sentiment, is driving the rebounds in Samsung Electronics and SK Hynix. Future changes in the financial health of AI-related companies, foreign investment flows, and global semiconductor market outlooks are expected to be key variables influencing stock price directions.
* This article has been translated by AI.
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