SK Hynix's US-listed ADR surged 27.29% on July 14 (local time), driving South Korea's KOSPI to recover 6.24% to 7284.41 on July 15. British investment bank Barclays set SK Hynix ADR target at $330, while IBM CEO Arvinds Krishna confirmed customers are reallocating capital expenditures to secure memory amid supply shortages. Barclays forecasts supply shortages to persist through next year with limited improvement by 2028.
On July 15, Samsung Electronics rose 6.27% and SK Hynix climbed 8.83%, recovering the 2 million won level in Korean trading. The rally followed strong performance in New York, where SK Hynix ADR jumped 27.29% alongside gains in Nvidia and Micron stocks. SK Hynix ADR now trades at a 50% premium over Korean shares.
Barclays Sets SK Hynix ADR Target at $330
Barclays set SK Hynix ADR target price at $330 (ADR 1 share equals 0.1 ordinary share), significantly above current Korean share targets of 4-4.3 million won. The investment bank stated supply shortage conditions will intensify next year, with only limited improvement by 2028.
Increased trading in SK Hynix ADR's 2x leveraged ETFs and options contributed to the 27.29% single-day surge. Hyundai Motor Securities researcher Kim Jae-seung stated the ADR listing creates a new price discovery channel between US and Korean markets rather than causing foreign investor outflows from Korean shares.
IBM CEO Confirms Memory Procurement Priority in Q2 Results
IBM announced preliminary Q2 results on July 14 showing revenue of $17.2 billion and adjusted earnings per share of $2.93, below market expectations of $17.9 billion revenue and $3.01 EPS. CEO Arvinds Krishna wrote in an investor letter that customers reallocated quarterly capital expenditures at end-June to prioritize securing servers, storage, and memory first.
Krishna explained customers who anticipated price increases due to supply shortages decided to purchase hardware before software. Jacob Bone, analyst at eMarketer, told the New York Times that AI investment is concentrating capital expenditures on memory and hardware, diverting budgets from software and services.
Hanmi Semiconductor Reports Record Q2 Operating Profit
Hanmi Semiconductor announced on July 14 that Q2 consolidated revenue reached a record high with operating profit of 130.3 billion won, up 51% quarter-over-quarter. The company's shares hit daily limit-up on July 15. Other back-end semiconductor stocks also posted strong gains, with Jusung Engineering rising 8.77% and Wonik IPS climbing 12.27%.
Dutch semiconductor equipment maker ASML reported Q2 results exceeding market expectations on July 15, with revenue of €9.326 billion for April-June, above the €8.8 billion estimate.
Big Tech Earnings Scheduled from July 23 to July 31
Google will report Q2 earnings on July 23, followed by Microsoft on July 30 and Amazon on July 31. SK Hynix is scheduled to announce Q2 results on July 29, with Samsung Electronics reporting on July 30. Market analysts expect capital expenditure guidance from hyperscalers to determine whether the semiconductor stock rally continues.
FAQ
What caused SK Hynix ADR to surge 27% on July 14?
SK Hynix ADR jumped 27.29% on July 14 (local time) after Barclays set a target price of $330 and IBM CEO Arvinds Krishna confirmed customers are prioritizing memory procurement amid supply shortages. Increased trading in 2x leveraged ETFs and options also contributed to the surge.
What did IBM's CEO say about memory demand in Q2 results?
IBM CEO Arvinds Krishna stated in an investor letter that customers reallocated capital expenditures at end-June to secure servers, storage, and memory first. He explained customers anticipating supply-driven price increases decided to purchase hardware before software.
When will major tech companies report Q2 earnings?
Google will report Q2 earnings on July 23, Microsoft on July 30, and Amazon on July 31. SK Hynix is scheduled for July 29 and Samsung Electronics for July 30.
