Samsung Electronics and SK hynix surge on Micron tailwind as memory shortage is expected to continue

NEW YORK and SEOUL = Financial News special correspondents Lee Byung-chul and Im Hyun-hyuk] K-semiconductor's two leading stocks surged after Micron's stellar results helped dispel concerns over an AI bubble. As expectations grew that semiconductor stocks would remain in a profit-making phase amid a memory supply shortage, Samsung Electronics and SK hynix posted sharp gains.
According to the Korea Exchange (KRX) on the 25th, the KOSPI closed at 8,930.30, up 459.28 points, or 5.42%, from the previous session. The index opened 2.74% higher at 8,703.42, then extended its gains to as high as 9,044.04 during the session, triggering a temporary suspension of program buy orders, known as a buy-side circuit breaker. It was the fifth buy-side circuit breaker this month. Samsung Electronics and SK hynix, the market's No. 1 and No. 2 companies by market capitalization, led the rally. On the day, Samsung Electronics rose 5.29%, while SK hynix jumped 13.06%.
As a result, semiconductor-related exchange-traded funds (ETFs) also surged across the board. According to Koscom Corporation's ETF Check, the day's top gainers included the Hanwha PLUS Global HBM Semiconductor ETF, up 10.28%; TIGER Japan Semiconductor FACTSET, up 8.98%; KoAct Global AI Memory Semiconductor Active, up 7.42%; and the KODEX Semiconductor Target Weekly Covered Call, up 6.96%.
Micron's strong performance lifted investor sentiment toward semiconductors. On the 24th local time, Micron announced that revenue for the third quarter of its fiscal 2025, covering March through May, came to $41.456 billion, about 4.5 times higher than $9.301 billion a year earlier. That was far above the company's revenue guidance of $33.5 billion. In particular, the market paid close attention to the fact that long-term contracts could help cushion the impact of memory price volatility. CEO Mehrotra explained that "multi-year strategic customer agreements will significantly improve the stability and predictability of Micron's earnings." He added that long-term contracts, which stood at just one last year, have now increased to 16. If the contracts currently under discussion are finalized, more than half of the company's revenue will come from long-term agreements.
The securities industry expects the KOSPI's upward trend to continue in the second half of the year, supported by sustained profit momentum centered on AI semiconductors. However, analysts also warn that investors should be cautious about heightened volatility. Yang Il-woo, a researcher at Samsung Securities, said, "We are raising this year's upper KOSPI band from 11,000 to 12,600. The profit momentum that briefly slowed this month is likely to resume from the third quarter." He added, "Investors should focus on AI-related value chains with strong earnings momentum. But volatility could remain elevated in the second half as well, so it is necessary to respond quickly to global macro variables."

yimsh0214@fnnews.com Im Hyun-hyuk Reporter