SK Hynix leads 11% Asian chip surge as US semis rebound
Asian semiconductor stocks rallied sharply following a Wall Street recovery, though fund managers warn the AI-driven hardware boom is showing signs of speculative excess.
SK Hynix shares surged 11% on Wednesday, leading a broad recovery across Asian semiconductor stocks. The movement tracked a rebound in US chipmakers after a sharp sell-off earlier in the week. The price action highlights the market's continued sensitivity to valuations in the AI supply chain.
Domestic rival Samsung Electronics climbed 6.8%, while Seoul Semiconductor added 6.4%. The rally extended to Japan, where Advantest gained 4.2%, Lasertec rose 6.4%, Disco advanced 2.8%, and Tokyo Electron added 0.9%. SoftBank Group edged up 0.8%, while Taiwan Semiconductor Manufacturing Co increased 0.4%.
These regional gains followed a turnaround on Wall Street where the VanEck Semiconductor ETF closed up 2.5%. Micron Technology and Lam Research both climbed roughly 5%, while Applied Materials and Teradyne gained more than 3%.
The persistent strength in hardware valuations reflects an ongoing "arms war" among technology companies to secure computing capacity. Jordan Cvetanovski, chairman and chief investment officer at Pella Funds, noted that this race overwhelmingly benefits equipment and memory makers. He warned that supply shortages, particularly among memory manufacturers, will continue as corporations scramble to secure components.
Despite the fundamental drivers, the sharp recent volatility is drawing scrutiny from market professionals. Cvetanovski cautioned that while demand for AI infrastructure remains robust, investor enthusiasm is becoming dangerously stretched.
"I'm starting to see some really concerning behavior in markets," Cvetanovski said on CNBC's "Squawk Box Asia." He characterized the recent price swings as "all the classic signs that we are in for a kind of rude shock coming in the AI space."
He emphasized that the immediate investment focus remains squarely on hardware providers as companies fight to secure compute power. "Every company out there will need to get access to as much computers they can," Cvetanovski said, framing the current spending dynamic as a "race to the finish line."
