SK Hynix, Samsung shares rally as report of Temasek’s investment plans boosts optimism
Both firms saw a brutal sell-off in July as doubts grew over the pace of rapid AI infrastructure buildout
South Korean chipmakers SK Hynix and Samsung Electronics experienced a significant sell-off in July due to doubts about the rapid AI infrastructure buildout. However, optimism has returned as risk appetite increased following last month's market rout. Local media reported that Singapore's Temasek Holdings plans to invest in Samsung Electronics and SK Hynix, which led to a brief surge in the chipmakers' shares.
Samsung ended the day on Wednesday up 6.7 per cent, while SK Hynix climbed 5.5 per cent, with the broader Kospi index gaining 3.7 per cent. Temasek clarified that it did not seek government advice on investment timing and that it had been investing in both companies for over two years. Analysts view the report as a positive confidence signal but not a game changer.
Both chipmakers have seen their valuations drop to record low levels after the July sell-off, now trading at 4.2 and 3.6 times forward earnings, respectively, compared to the Semiconductor Index's 21 times.
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- SK Hynix, Samsung Shares Extend Gain on Report Temasek to Invest bloomberg.com
- SK Hynix, Samsung shares rally after report Temasek to invest straitstimes.com
