Shares of SK Hynix saw a significant increase on Wednesday, elevating the South Korean chipmaker’s market capitalization to over $1 trillion for the first time. This surge follows an impressive rally, with the stock climbing about 250% since the beginning of the year, primarily fueled by heightened demand for AI chips. As a result, South Korea’s KOPSI index reached record highs.
SK Hynix is not alone in this impressive market achievement; U.S. tech giant Micron also benefitted from the AI boom. On Tuesday, UBS raised its price target for Micron threefold, which contributed to a 19% spike in its share price on the same day.
In related developments, China’s industrial profits surged by 24.7% in April, marking the fastest growth rate since November 2023. The manufacturing sector, particularly in computing and electronics equipment, reported earnings nearly doubling compared to the previous year. A survey from the European Union Chamber of Commerce indicated that many European firms are reinforcing their supply chains within China, with one-third of respondents planning to expand operations there.
On the policy front, François Villeroy de Galhau, a key member of the European Central Bank (ECB), assured markets that the institution would take necessary measures to keep inflation in check. He reiterated the commitment to bringing inflation back to the 2% target within the medium term.
In corporate news, shares of Italian luxury car manufacturer Ferrari closed significantly lower after the unveiling of its electric vehicle, the Luce, which failed to impress investors. Concerns over its design and the steep $640,000 price tag led to widespread skepticism. Likewise, BP’s stock dropped as the company removed chairman Albert Manifold amid serious conduct allegations; he responded by stating that he would not let a “false narrative” go unchallenged.
Overall, equity markets in Japan and South Korea hit new highs, reflecting the ongoing tensions and developments surrounding U.S.-Iran ceasefire discussions. U.S. stock futures remained stable after the S&P 500 achieved another record closing on Tuesday. In Europe, stocks were set for a mixed opening, reflecting varying market sentiments.
