Samsung Electronics, SK Hynix rise 5% as KOSPI gains 3.3% after Super Micro outlook
In short
South Korea's KOSPI closed up 3.29% at 5,735.66 on 21 October, a day after a 3.73% fall, led by Samsung Electronics (up 5.67%) and SK Hynix (up 5.81%). Korean outlets linked the rebound to U.S. server maker Super Micro Computer raising its quarterly revenue outlook, and also to falling oil prices and foreign net buying.
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The KOSPI closed up 182.92 points, or 3.29%, at 5,735.66 on 21 October, rebounding a day after a 3.73% fall, Seoul Shinmun reported citing the Korea Exchange. Samsung Electronics closed up 5.67% at 223,500 won and SK Hynix up 5.81% at 1,294,000 won. The index rose as high as 5,816.43 during the session, and a buy-side sidecar was triggered, the first on the KOSPI since 20 August. [ 10 , 11 ]
Foreign investors net bought 660 billion won, while individuals net sold 1.1308 trillion won and institutions 72.2 billion won, according to Seoul Shinmun. Newsis reported on 22 October that foreigners net bought Samsung Electronics for four straight sessions from 16 to 21 October, a total of 1.3247 trillion won, after net selling it for 12 straight sessions to 15 October, about 7.8 trillion won in all. In SK Hynix, foreigners had net sold for 18 straight sessions from 21 September, a total of 16.1669 trillion won, but net bought 200.6 billion won on 21 October. [ 10 , 16 ]
Super Micro Computer said in a preliminary results filing on 20 October U.S. time that revenue for the July-September quarter would be $18.5 billion to $19.5 billion. The midpoint of $19 billion is about 3.8 times the $5.02 billion of a year earlier. The range compares with the company's earlier guidance of $14.5 billion to $15.5 billion and with a $15.23 billion consensus compiled by LSEG. It forecast a gross margin of 12.0% to 12.5%, up from 10.4% to 10.8%. The company attributed the revenue increase to higher demand for AI platforms and the margin improvement to customer and product mix. Final results are due in a conference call on 3 November, and Yonhap reported that the company did not say why it released preliminary figures early. [ 2 , 7 ]
Korea Economic Daily said Super Micro shares rose more than 17% after hours, while Yonhap reported a 13.9% gain to $37.00 and Seoul Economic Daily more than 13%. Yonhap said Dell Technologies and Hewlett Packard Enterprise rose 5.9% and 5.2% after hours, and Nvidia, which fell 0.3% in the regular session, rose 2.1%. [ 2 , 3 , 5 ]
Outlets cited several drivers. Korea Economic Daily and Newsis said oil prices and U.S. yields fell on expectations of U.S.-Iran diplomatic mediation, and Korea Economic Daily added that Qatar and Pakistan had put forward a new peace proposal. Newsis quoted a Daishin Securities researcher who also pointed to results from SpaceX and to October 1-20 exports, which rose 105.4% to $61.6 billion. [ 5 , 11 ]
Analysts were cautious. A Kiwoom Securities researcher said KOSPI daily trading value had fallen from about 23 trillion won last week to about 17 trillion won this week, so the domestic buying base was not strong. He said a lasting improvement in chip supply and demand could restore downside support, but it was too early to call Samsung Electronics net buying a trend. A Meritz Securities researcher said figures backing aggressive growth forecasts were starting to appear, but that funding concerns for AI investment could not be seen as directly eased. [ 3 , 16 ]
Why it matters
Outlets presented the move as a recovery in sentiment toward AI-related stocks after a sharp fall. Analysts quoted in the coverage said it was too early to call foreign buying a trend and that worries over funding AI investment were not directly eased.
Key facts
- The KOSPI closed up 182.92 points, or 3.29%, at 5,735.66 on 21 October after falling 3.73% the previous day. [ 10 ]
- Samsung Electronics closed up 5.67% at 223,500 won and SK Hynix up 5.81% at 1,294,000 won. [ 10 , 11 ]
- Super Micro Computer said on 20 October (U.S. time) that its July-September revenue would be $18.5 billion to $19.5 billion, up from its earlier guidance of $14.5 billion to $15.5 billion. [ 2 , 5 , 7 ]
- Foreign investors net bought 660 billion won of KOSPI shares, while individuals net sold 1.1308 trillion won. [ 10 ]
- A buy-side sidecar was triggered on the KOSPI, the first since 20 August. [ 10 ]
- Exports from 1 to 20 October rose 105.4% from a year earlier to $61.6 billion, and chip exports rose 222.5% to $27.52 billion, a Daishin Securities researcher said. [ 11 ]
Confirmed by several sources
- Samsung Electronics and SK Hynix each closed up more than 5% on 21 October, and the KOSPI rose about 3.3%. [ 10 , 11 , 12 , 13 ]
- Super Micro Computer raised its July-September revenue outlook to $18.5 billion to $19.5 billion, above its earlier $14.5 billion to $15.5 billion range and above the LSEG consensus of $15.23 billion. [ 2 , 5 , 7 ]
- Super Micro attributed the revenue increase to higher demand for AI platforms; its gross margin outlook of 12.0% to 12.5% was raised from 10.4% to 10.8%, which it tied to customer and product mix. Final results are due in a conference call on 3 November. [ 2 , 7 ]
- Outlets linked the Korean rebound to Super Micro's results and to easing oil prices and U.S. yields on expectations of U.S.-Iran diplomatic mediation. [ 3 , 5 , 11 ]
Still unclear
- How far Super Micro shares rose after hours. Yonhap reported a 13.9% gain to $37.00, Seoul Economic Daily said more than 13%, and Korea Economic Daily said more than 17%.
- Whether foreign buying of Korean chip stocks marks a lasting change. A Kiwoom Securities researcher said it was too early to call Samsung Electronics net buying a trend in supply and demand improvement.
- Whether concerns about funding AI investment have eased. A Meritz Securities researcher said such concerns could not be seen as directly eased, even as company results and guidance began to support growth forecasts.
- Why Super Micro released preliminary figures ahead of schedule. Yonhap reported the company did not give a reason.
What local media are saying
Timeline, local time
- In pre-market trading on Nextrade, Samsung Electronics traded at 217,500 won, up 2.84%, and SK Hynix at 1,257,000 won, up 2.78%. [ 3 ]
- Samsung Electronics traded at 222,500 won, up 5.2%, and SK Hynix at 1,297,000 won, up 6.05%. [ 5 ]
- The KOSPI closed at 5,735.66, up 3.29%. [ 10 ]
- On 22 October, Newsis reported that foreigners had net bought Samsung Electronics for four straight sessions. [ 16 ]