Asian technology stocks collectively strengthened, with South Korea's SK Hynix rising 8%
SK Hynix led gains across Asia's technology sector on Wednesday The U.S. semiconductor sector closed higher overnight The logo of the SK Hynix office building in Seongnam, South Korea, Tuesday, June 30, 2026. The U.S. semiconductor sector suffered a sharp sell-off at the beginning of this week and rebounded overnight. Driven by this, SK Hynix led Asian technology stocks to rise across the board on Wednesday. The South Korean memory chip maker closed up more than 8% on the Seoul Exchange; its U.S. depositary receipts rose more than 27% overnight. On Monday, SK Hynix's local share price in South Korea hit its largest single-day decline due to market concerns about AI capital expenditures and investors' focus on taking profits and leaving the market. The rising market spread to the entire Japanese chip industry chain: Advantest closed up 5.83%, Laser Technology rose 10.18%, and Tokyo Electronics rose 4.37%; only The group closed down 3.26%. Shares rose 0.83%. The current round of strength in Asian technology stocks stems from the recovery of the Wall Street market: after the U.S. semiconductor sector fell sharply on the previous trading day, it recovered overnight. Vanda Semiconductor ETF (SMH) rose 2.5%, Technology and Lam Semiconductor each rose about 5%. Although the market rebounded on Wednesday, some investors warned that the current market enthusiasm for the AI hardware sector has become significantly overheated. Jordan Cvetanovsky, chairman and chief investment officer of Perla Fund, said that major companies are rushing to expand computing facilities and the demand for AI infrastructure is still strong, but the market is showing signs of a speculative bubble. He said in the "Asian Financial Forum" program: "I have seen many worrying trading behaviors in the market. The recent violent fluctuations are typical signals that the AI track is about to undergo a severe correction." Cvetanovsky added that in this round of AI investment boom, hardware manufacturers are the biggest beneficiaries, and various companies are frantically expanding their computing power production capacity. "The focus of the market will be on the hardware side. This is a racing competition and an arms race. All companies are hoarding computing power resources as much as possible, and the most intuitive manifestation is the shortage of supply by storage manufacturers."