Investing.com– SK Hynix Inc () shares reversed early losses and advanced on Thursday following a report that the memory chip giant planned to triple its wafer capacity in the coming decade.
SK Hynix rose 2.6% to 21 million won after falling as much as 3.5% earlier in the session. The rebound also helped the KOSPI index recoup some initial losses, although it still traded down.
Rival Samsung Electronics Co Ltd (KS:005930) fell over 1%.
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SK Group Chairman Chey Tae-won told the Nikkei Asia on Wednesday that SK Hynix will triple its wafer capacity by 2034 to meet surging demand for its advanced memory chips, which are crucial for artificial intelligence development.
The company is one of the worlds largest memory chip producers, and has benefited greatly from outsized AI-fueled demand in the past year, which tightened memory markets and sent prices soaring.
SK Hynix’s valuation soared past $1 trillion last month on this trend.
But the stock became vulnerable to heavy profit-taking in early-June, sinking some 11% last week as doubts emerged over the AI trade. Fears of rising global interest rates also weighed heavily on tech shares.