Markets reacted positively after Micron Technology posted record quarterly results and set a firmer-than-expected near-term outlook, easing concerns about demand for memory chips tied to artificial intelligence. The news sent shares of South Korea’s two largest chipmakers significantly higher on Thursday.
Price moves and market reaction
Samsung Electronics rose 5.3% to 358,500 won, and SK Hynix jumped 9.2% to 2.818 million won, both outperforming the broader South Korean market. Micron’s update - including a forecast for fourth-quarter revenue above Wall Street estimates and a statement that demand for AI memory products would keep supplies tight through at least 2027 - lifted investor sentiment in the semiconductor space. Micron shares increased by roughly 12% in after-hours trading, contributing to gains across U.S. chip stocks and driving Nasdaq futures higher.
What underpinned the rally
Micron’s strong results appeared to reduce worries that lofty valuations for AI-linked chipmakers had exceeded underlying fundamentals after a sector-wide correction earlier in the week. The company also disclosed $22 billion of multi-year customer commitments, which reinforced expectations that investment in AI infrastructure remains resilient despite recent volatility.
SK Hynix’s performance received an additional lift from a separate corporate announcement. The firm said it intends to raise as much as $29.4 billion through a Nasdaq listing of American depositary receipts. Management indicated that proceeds would be used to expand AI memory production capacity. Market commentary pointed out that a U.S. listing could help narrow SK Hynix’s valuation discount relative to American peers and broaden its global investor base.
Market positioning and investor preference
The latest rally added to a notable run for SK Hynix, which earlier this week overtook Samsung Electronics to become South Korea’s most valuable listed company. Investors have shown a preference for companies with greater exposure to high-bandwidth memory (HBM) - the premium memory used in AI accelerators - which has left SK Hynix with an advantageous position in that segment. While Samsung remains the world’s largest memory-chip maker overall, market sentiment has increasingly favoured players with stronger positioning in premium AI memory, a trend reinforced by Micron’s results and guidance.
Broader market impact
The benchmark KOSPI rose 4.1% to 8,815.29 in afternoon trade, reflecting the spillover from the semiconductor sector to the wider South Korean market.
Note on reporting limitations
The article reflects the information disclosed by the companies and market price moves reported during trading and in after-hours sessions. Where corporate statements or market commentary are referenced, they originate from the disclosures and market reactions described above.