The South Korean stock market is clearly strong on Wednesday, and the AI chip-related shares are rising. The main line of market transactions focused on two points: SK Hercules announced large-scale stock buy-backs, and the fall in the United States long-term national debt return, which eased the financial pressure on the high-value valuation technology unit.
SK Hercules announced a big buyback.
SK Hercules disclosed that a stock buy-back plan of approximately $28.8 billion would be initiated. Repurchase news directly boosted the company ' s stock price and led to an overall increase in the Korean semiconductor plate.
It was reported that Samsung electronics also increased by almost 9 per cent that day. This means that SK Hercules's buyback alone is not enough to explain the synchronisation of the entire plate, and that the market is more concerned about how changes in the external interest rate environment drive transactions in AI.
America’s Long-Language Debt Return
According to the United States Treasury Department, the scale of long-term public debt buy-back operations, which partially supports liquidity, will increase from $2 billion to at least $4 billion per buy-back. Following the announcement, the United States long-term national debt return went down.
According to Reuters, the annual rate of return on United States debt declined by about 10 basis points to about 5.19 per cent. For S & T units, falling long-term interest rates usually mean improved financing conditions and increases the market ' s risk preference for high-capital expenditure industries.
AI infrastructure expected to be supported
Samsung Electronics and SK Hercules are key suppliers in the AI industrial chain, especially in the area of advanced storage and high bandwidth memory chips. As interest rate pressures eased, the market's confidence in the continued investment of large cloud service providers in AI infrastructure recovered.
Previously, AI memory transactions had been double suppressed by high valuation and rising borrowing costs. KB securities strategist Lee Eun-sai warned that if the 10-year national debt return in the United States remained between 5 and 5.3 per cent, the attractiveness of data centre financing could decline, thus affecting the AI investment cycle.
On the whole, this increase reflects the fact that the market is still re-pricing the AI block around interest rates and expected capital expenditures. For the chip unit, funds are now more focused on whether the financing environment continues to improve and whether large technology companies can sustain AI investment intensity.