Semiconductor ETFs Post Over 20% Returns This Month
"Strong AI Company Earnings and Steady Demand Fuel Investor Sentiment"
As Samsung Electronics and SK Hynix both set new 52-week highs, semiconductor exchange-traded funds (ETFs) have also recorded strong returns this month. The surge in stock prices is attributed to robust earnings from artificial intelligence (AI)-related companies and expectations of continued solid demand in the future.
According to the Korea Exchange on September 15, the top-performing domestic ETF between September 1 and 12 was TIGER 200 IT Leverage, with a return of 25.18%. This was followed by TIGER Semiconductor TOP10 Leverage (24.85%), KODEX Semiconductor Leverage (24.15%), and UNICORN SK Hynix Value Chain Active (18.77%).
In addition, PLUS Global HBM Semiconductor, WON Semiconductor Value Chain Active, and KIWOOM K-Semiconductor North America Supply Chain also posted gains of over 10%, with most of the top performers being semiconductor-related ETFs.
This is in stark contrast to just a month ago. Until August, semiconductor stocks had been underperforming. Last month, Samsung Electronics and SK Hynix shares fell by 2.38% and 1.65%, respectively, affected by concerns over an AI bubble.
However, the sentiment has shifted dramatically. Major global AI companies have reported strong earnings one after another, and news of large-scale orders has further boosted investor confidence.
Dutch company Nefius signed a large-scale AI infrastructure contract with Microsoft, and Broadcom secured bulk orders for custom AI chips. Oracle's stock price soared by more than 40% in a single day on September 10 (local time), fueled by a surge in demand for AI cloud services. These developments indicate that AI demand is not merely temporary.
Buoyed by these factors, Samsung Electronics and SK Hynix both recorded new 52-week highs on September 12. Analysts in the securities industry expect the earnings improvement trend among semiconductor companies to continue for the time being. It is analyzed that increased AI investment will have a positive impact on the overall memory industry.
Lee Jonguk, a researcher at Samsung Securities, explained, "There is little chance that the supply-demand for high bandwidth memory (HBM) and general-purpose DRAM will peak or shift to oversupply by the first half of next year. Investors have started to anticipate large-scale AI investments and the resulting profit growth for memory companies again."
Chae Minsook, a researcher at Korea Investment & Securities, also stated, "Demand for HBM continues to show solid growth. As the average selling prices (ASP) of general-purpose DRAM and NAND flash rise, the overall performance and stock prices in the memory sector are expected to improve."
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