[Featured Stocks] SK Hynix Up 3% Intraday, Samsung Electronics Rises Over 2%

[Asia Economy Reporter Minji Lee] SK Hynix and Samsung Electronics are showing an upward trend as expectations grow that the semiconductor market will enjoy a boom next year.

At 2:10 PM on the 9th, SK Hynix was trading at 119,000 KRW, up 3.48% from the previous trading day. The company’s stock price surged to 120,500 KRW during the day, setting a new 52-week high.

Samsung Electronics was trading at 73,200 KRW at the same time, up 2.09%. The stock price rose to 73,400 KRW during the day, close to the highest price recorded on the 7th (73,500 KRW).

The reason behind the stock price increase is the expectation that the semiconductor market will enter a super cycle next year. Although a clear recovery in server demand or a definite rebound in memory prices is not yet imminent, the anticipation of rising DRAM prices next year and the mid- to long-term direction of earnings recovery appear to be driving the stock prices upward.

Oh Kyu-jin, a researcher at DB Investment & Securities, said, “Due to the increase in untact demand caused by COVID-19, data center customers’ efforts to reduce inventory will normalize by the first quarter of next year at the latest, and from the second quarter onward, demand for server DRAM and SSDs will significantly recover.” He added, “Considering that suppliers’ investments have been limited, a sharp rise in memory prices is expected after the second quarter of next year.”

This content was produced with the assistance of AI translation services.