Asian technology stocks rallied on Wednesday after SK Hynix reported a massive surge in third-quarter revenue, reinforcing optimism about artificial intelligence demand. The South Korean memory-chip maker's results provided a fresh boost to semiconductor shares, which have been under scrutiny amid concerns about the sustainability of the AI trade.
South Korea's Kospi index jumped 6.84%, putting it on track for its biggest single-day gain since July 31. Japan's Nikkei 225 rose 1.22%, while MSCI's broadest index of Asia-Pacific shares outside Japan advanced 1.7%. Chipmakers led gains in Japan, with Kioxia Holdings soaring over 12% and Taiyo Yuden climbing nearly 8%.
SK Hynix reported an operating profit of 83.3 trillion won, beating Bloomberg estimates of 77.5 trillion won. Revenue surged 328% to 104.6 trillion won, and net income climbed 216% to 39.78 trillion won. The company also announced plans to return 100 trillion won to shareholders this year, a move that further lifted sentiment.
The company said its supplies of high-bandwidth memory (HBM) and DRAM chips are sold out through 2029. It also noted that HBM demand is twice what it can supply, warning that a chip shortage could persist through 2030. These comments underscored the strength of AI-driven demand for advanced memory products.
The results came in a week already buoyed by news of Anthropic's initial public offering filing, which had lifted sentiment across AI-related stocks. Investors are increasingly looking to earnings from major chipmakers as a gauge of the durability of the AI investment cycle.
Samsung Electronics shares rose as much as 7.9% ahead of its third-quarter results, extending gains across South Korean semiconductor stocks. The company has forecast a preliminary operating profit of 107.40 trillion Korean won, up roughly 783% year-over-year. Investors are seeking further evidence that AI infrastructure spending is translating into sustained demand for chips and memory products.
US equity futures were mixed early Wednesday, with S&P 500 futures edging higher and Nasdaq-100 futures up 0.5%, while Dow Jones Industrial Average futures slipped 0.2%. The contrasting moves suggested a cautious start for US markets, even as Asian tech stocks rallied on the back of SK Hynix's results.
Alphabet and Microsoft are set to kick off Big Tech earnings after the market close on Wednesday. Investors will scrutinize these results for clues on whether massive spending on AI is yielding the desired returns.
This article is for informational purposes only and does not constitute financial advice.
