SK hynix (NASDAQ:SKHY) shares jumped 6.2% in pre-market trading to $164.20, extending gains seen in South Korea as semiconductor stocks advanced ahead of a busy week of earnings releases.
In domestic trading, Samsung Electronics (USOTC:SSNHZ) rose 1.80%, while SK Hynix gained 3.24%, with both companies scheduled to publish second-quarter results later this week.
AI investment continues to support chipmakers
The sector also received a boost after South Korea unveiled a 950 billion-dollar package of new artificial intelligence initiatives on Saturday involving Samsung, SK Group and several U.S. technology companies.
The investment aims to accelerate AI development and expand the supply of advanced semiconductors as demand continues to outpace production of high-performance chips needed for next-generation AI systems.
Earnings expectations remain strong
Investor optimism has also been fuelled by SK Hynix’s upcoming second-quarter earnings report, due on July 29.
Analysts expect the company to report revenue of around 84 trillion won, alongside what could be a record operating margin, supported by continued strength in DRAM and NAND memory prices.
ADR structure amplifies price movements
SK Hynix’s U.S.-listed American depositary receipts (ADRs) have consistently traded at a premium to the company’s Seoul-listed shares since making their Nasdaq debut earlier this month.
That premium, which has ranged from 16% to 51%, can lead to larger price swings in U.S. trading because arbitrage opportunities remain limited, making it more difficult for investors to narrow the valuation gap between the two listings.
Positive market sentiment lifts semiconductor stocks
The broader market also provided a favourable backdrop, with the Nasdaq rising 1.7% and the S&P 500 gaining 1.0% as investors continued rotating into technology and semiconductor shares.
Micron (NASDAQ:MU) also benefited from improving sentiment surrounding AI infrastructure spending, while analysts at firms including Morgan Stanley and Mizuho continued to characterise the recent weakness in memory-chip stocks as a buying opportunity rather than the beginning of a longer-term downturn.
With optimism surrounding AI investment, robust earnings expectations and supportive equity market conditions, investors positioned ahead of what could be a pivotal earnings report for SK Hynix and the wider memory semiconductor industry.