Kospi Rebounds 7% as Strong SK Hynix Results Lift AI Stocks

South Korean chip stocks spearheaded a fresh recovery in AI-related equities after SK Hynix reported a sevenfold surge in quarterly profit and unveiled plans for an additional $45 billion in shareholder distributions.

The Kospi advanced 6.6% on Wednesday, buoyed by the memory chipmaker’s better-than-expected financial performance and its commitment to further buybacks and dividends. The announcements helped bring investors back to AI stocks following a period of sustained selling.

SK Hynix shares soared 11%, while Samsung Electronics gained 9%. The optimism carried over to U.S. premarket trading, lifting Micron Technology (MU) and SanDisk (SNDK) by 4% each.

The latest advance follows a broader improvement in AI-related shares over recent sessions. The sector had struggled for weeks as investors raised questions about the enormous costs associated with expanding AI computing infrastructure.

SK Hynix recorded operating profit of 83.3 trillion won ($62.5 billion) in the September quarter, according to Bloomberg. The figure was seven times higher and exceeded analyst projections by more than 7%.

The company also outlined plans to return a further 60 trillion won ($45 billion) to investors through dividends and share repurchases during the remainder of its fiscal year.

On the supply side, SK Hynix said its available capacity for standard memory chips and high-bandwidth memory (HBM) has already been booked through 2029. Bloomberg noted that shortages could persist through at least 2030.

The results indicate that tight memory supplies and sustained demand are continuing to underpin chipmakers’ profitability. Nevertheless, investors remain cautious about the substantial funding required for AI infrastructure expansion and the long-term sustainability of that investment.

Bitcoin also recorded a slight recovery, rising to approximately $81,700.