Semtech shares have seen a significant increase, rising nearly 20% as investor sentiment improves amid strong performances from major domestic semiconductor companies like Samsung Electronics and SK Hynix.
As of 1:56 PM on May 21, Semtech's stock was trading at 124,000 won, up 24,000 won (19.69%) from the previous trading day, according to the Korea Exchange.
On the same day, shares of Samsung Electronics and SK Hynix also experienced substantial gains, reflecting a broader buying trend across the semiconductor value chain. The positive sentiment followed the resolution of labor negotiations at Samsung Electronics, which improved investor confidence in the semiconductor sector. At that time, Samsung Electronics rose by 7.79%, while SK Hynix surged by 11.12%, indicating a widespread buying interest in major semiconductor stocks.
Samsung Electronics and its labor union signed a tentative agreement on wage negotiations for 2026 just before a planned strike. Han Ji-young, an analyst at Kiwoom Securities, noted that "the easing of strike risks could lead to a favorable supply-demand environment centered around semiconductor stocks."
Additionally, strong earnings from Nvidia have further stimulated investor interest. Nvidia reported that its revenue for the first quarter of the fiscal year (February to April) reached $81.62 billion (approximately 122 trillion won), marking a nearly 20% increase from the previous quarter and setting a record for the twelfth consecutive quarter. Analysts suggest that the growing demand for high-bandwidth memory (HBM) driven by increased investments in AI servers is positively impacting the entire domestic semiconductor sector.
* This article has been translated by AI.
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