Investors in the AI trade are looking to South Korea for answers this week.
The nation’s stock market — which counts trillion-dollar chipmakers Samsung and SK Hynix as primary members — has been red-hot this year amid a global memory-chip shortage. That’s captured the attention of US investors, which are looking ahead to two key developments.
First, Samsung will release earnings before the Korean market open on Tuesday, offering a look at the company’s rapidly growing finances. It’s expected to see an 18-fold increase in operating profit, and a 127% year-over-year surge in revenue, according to Bloomberg forecasts.
Second, SK Hynix has started to market a $29 billion US listing, which would be the biggest-ever for a first-time foreign firm. Trading is expected to begin on July 10. The chipmaker is the world’s top supplier of high-bandwidth memory, a critical component of AI and data center applications.
The move to list in the US represents a significant fundraising opportunity for the South Korea firm. Prior to the debut, it’s been difficult for US investors to invest directly in the stock.
Demand for memory chips has surged over the past year, marking a new crop of AI winners, shining a new light on South Korea’s tech sector.
While South Korea’s stock market has felt some turbulence after a torrid rally, Goldman Sachs maintains that it still has room to run, highlighting the likelihood of strong earnings momentum in the next quarter.
Source: Original Article
