$SKHYNIX #SKHynixSurgesOver5%

NVIDIA Earnings Ignite Asia: Korean Semiconductor Giants Rise

SK Hynix Rises Over 5%, Samsung Over 3%; KOSPI Approaches 7,000

NVIDIA's second-quarter earnings for fiscal year 2027 sent shockwaves not only through the US market but also across the global semiconductor market. During Asian trading hours, leading South Korean memory manufacturers surged following NVIDIA's better-than-expected results and strong guidance.

At the open, SK Hynix shares gained over 5%, while Samsung Electronics rose more than 3%. This momentum pushed the KOSPI index up by approximately 3%, bringing it closer to the 7,000 level.

NVIDIA Effect: Better-than-Expected Earnings

NVIDIA's announced quarterly revenue of $96.2 billion significantly exceeded market expectations of $92.2 billion. Data center revenues exceeded expectations, reaching $89 billion, while earnings per share also surpassed estimates at $2.22. The company's guidance of approximately 70% growth for fiscal year 2028 significantly exceeded the market's expectation of around 45%.

These strong results were interpreted as a direct demand signal for memory manufacturers in Asia. SK Hynix and Samsung are key suppliers of high-bandwidth memory (HBM) used in NVIDIA's AI chips.

A New Era in the Memory Market

NVIDIA's results also highlight the dynamics within the memory sector. The trillion-dollar investment appetite for AI infrastructure is causing significant increases in memory prices. Manufacturers like SK Hynix and Samsung have increased their pricing power due to demand exceeding supply. Analysts suggest that the supply constraint in memory could continue until 2027, creating a favorable market environment for major manufacturers.

Asian Markets Rise and Restore Confidence

The rise in the KOSPI index reflects not only optimism towards the semiconductor sector but also the confidence generated by NVIDIA's results. Investors, previously concerned by the semiconductor sell-off in the US and NVIDIA's prolonged downtrend, have begun to take positions in light of the strong balance sheet and guidance.

The recovery in Korean semiconductor stocks, in particular, stands out as a result of NVIDIA's strong message regarding AI demand. Company-specific developments such as Samsung and SK Hynix's share buybacks also had a positive impact on the index.

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