SK Hynix South Korean shares jump 11% as Asia tech stocks rally

SK Hynix led a broad rally in Asian technology stocks on Wednesday, following a rebound in U.S. semiconductor names following sharp selloffs earlier this week.

Shares of the South Korean memory chip maker rose more than 11% in Seoul, building on gains from the previous session. The stock’s rebound comes after the stock suffered its biggest one-day decline ever on Monday as investors locked in profits on growing concerns about artificial intelligence spending.

While domestic rival Samsung Electronics gained 6.8%, Seoul Semiconductor gained 6.4%.

The rise has spread to Japan’s chip industry. cutting edge increased by 4.2%, Lazertec 6.4% won, Disco increased by 2.8 percent SoftBank Group increased by 0.8%. Tokyo Electron gained 0.9 percent Renesas Electronics fell 0.2 percent.

The gains followed a rebound on Wall Street, where semiconductor stocks rebounded from the previous session’s selloff. VanEck Semiconductor ETF up 2.5 percent Micron Technology And Lam Research each climbing by about 5%. Applied Materials And teradyne It gained over 3 percent.

Despite Wednesday’s rebound, some investors warned that enthusiasm for AI-related hardware stocks was becoming strained. Jordan Cvetanovski, president and chief investment officer of Pella Funds, said demand for AI infrastructure remains strong as companies race to build computing capacity, but signs of speculative excess are beginning to emerge.

“I’m starting to see some worrying behavior in the markets,” he told CNBC’s “Squawk Box Asia,” adding that the recent volatility are “classic signs that we’re facing some kind of hard shock in the AI ​​space.”