The Korean stock market rebounded rapidly after a sharp fall at the end of July, and the Kospi index rose by more than 20 per cent from the low point of closing on 30 July, re-entering the technical cattle city. The core force driving this round is from AI storage chip-related stock warming.
Sandisk Powered Storage Unit
The latest catalyst for market sentiment comes from Sandisk. According to the report, the company gave optimistic business expectations and expected that the adjusted Māori rate would remain close to 80 per cent. For the traditionally volatile storage industry, this expression has clearly boosted market confidence.
Optimism quickly spreads to peers. America's light rises by 4.2 per cent, Western data rises by 7.3 per cent, and SK Hercules is clearly high. Sandisk also signed multi-year supply agreements with eight clients in an attempt to reduce the reliance of performance on fluctuations in traditional storage cycles.
Samsung and SK Hercules are leading the rebound.
The rebound in the Korean market is still largely driven by Samsung Electronics and SK Hercules. The two companies, which were the main drag factor in the crash of July, are now the main beneficiaries of the AI storage transaction.
In Thursday's deal, Samsung electronics rose by about 5 per cent and SK Hercules by about 6 per cent, pushing the Kospi index further up. By Friday, Kospi will have increased by 2.1 per cent and will be back on the 700 point after about 15 trading days.
In retrospect, the previous downturn was characterized by considerable market volatility. On 28 July, Kospi fell 10.8 per cent a day, and Samsung electronics and SK Hercules fell 13.6 per cent and 14.4 per cent, respectively. The market continued to collapse significantly the following day, and at one point triggered a temporary stoppage.
Next stop at 700.
Although the technology has returned to the cattle city, the sustainability of this round is still observed. Kospi is still below the high point created in June, and the high dependence of the index on Samsung electrons and SK Hercules means that both the rise and the fall may be magnified.
Reuters mentioned earlier that during this year ' s large market volatility, the two chip companies together accounted for about half the weight of the benchmark index. In other words, as long as the AI storage transaction continues to heat up, the index may still benefit; but if the tap shares again weaken, the pullback pressure will be felt faster.
Currently, AI ' s improved storage needs, investor silo rehabilitation and the positive outlook offered by Sandisk are providing justification for the return of funds. For the market, 7,000 points will be the next important observation point.