By Kwanwoo Jun
Shares of South Korean semiconductor manufacturers are tracking U.S. chip makers higher ahead of artificial-intelligence chip giant Nvidia's earnings report.
Gains for Samsung Electronics and SK Hynix, Korea's two largest companies in terms of market capitalization, helped lift the benchmark Kospi 1.9% to its highest intraday level this year.
Samsung, the world's top memory-chip maker, climbed as much as 4.1% Wednesday; Hynix, a supplier of high-bandwidth-memory products to Nvidia, rose as much as 3.5%.
The gains mirrored the strength in U.S. chip stocks Tuesday, with the tech-heavy Nasdaq up 2.1% and the PHLX semiconductor index 3.4% higher. That rally was led by Nvidia, which jumped more than 3% ahead of Wednesday's quarterly earnings report.
Some analysts expect Nvidia to deliver higher sales and profits, driven by strong demand for its Blackwell chips.
Investors will be looking to see if Nvidia can sustain its momentum amid a murky geopolitical environment and strained trade relations with China, according to Wedbush analysts. They add that new AI investments throughout the Middle East may help fill the void left by near-term China uncertainty.
Nvidia earlier this month announced a multiyear AI chip deal with Humain, a Saudi data center firm. The deal alleviated concerns about a possible slowing in AI spending.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
May 27, 2025 23:03 ET (03:03 GMT)
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