Investor sentiment in artificial intelligence (AI) has rebounded, leading to a surge in semiconductor stocks and a concurrent rise in power infrastructure-related shares.
As of 2:33 PM on July 31, Hyosung Heavy Industries was trading at 2,947,000 won, up 510,000 won (21.08%) from the previous trading day. At the same time, HD Hyundai Electric rose by 93,000 won (15.95%) to 676,000 won, while LS ELECTRIC increased by 31,800 won (21.16%) to 182,100 won.
With expectations for expanded AI infrastructure investment, buying interest has spread to companies involved in power equipment and power grid construction, which are essential for data center development. The power equipment sector is seen as a key beneficiary of the growing demand for electricity driven by the expansion of AI data centers and the need to replace aging power grids.
In the U.S. stock market overnight, semiconductor stocks rebounded sharply, buoyed by strong performances from major tech companies and semiconductor equipment manufacturers. The Philadelphia Semiconductor Index (SOX) surged 8.2% on July 30, recovering from recent concerns over overheating AI investment. Microsoft shares jumped 15.51%, while Micron, SanDisk, and SK Hynix ADR also saw significant gains of 18.3%, 25.8%, and 17.5%, respectively.
The recovery in investor sentiment is largely attributed to Microsoft's strong earnings report. The company reported quarterly revenue of $90 billion, exceeding market expectations of approximately $87.6 billion to $87.7 billion, driven by growth in its AI and cloud businesses. Earnings per share (EPS) also surpassed forecasts, coming in at $4.74 compared to the expected $4.24.
Notably, capital expenditures (CAPEX) remained steady at $40 billion, alleviating concerns about a slowdown in AI investment. This has led to widespread optimism that the trend of expanding AI infrastructure investment will continue, benefiting both semiconductor and power infrastructure stocks.
On the domestic market, bolstered by the recovery in AI investment sentiment, Samsung Electronics surged over 26%, while SK Hynix, SK Square, and Samsung Electro-Mechanics also hit their daily price limits, leading the rise in large-cap semiconductor stocks.
* This article has been translated by AI.
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