{"slug": "sk-hynix-samsung-shares-rally-as-report-of-temaseks-investment-plans-boosts", "title": "SK Hynix, Samsung shares rally as report of Temasek’s investment plans boosts optimism", "summary": "South Korean chipmakers Samsung Electronics and SK Hynix shares rallied more than 8% after a local media report that Singapore's Temasek plans to invest directly in the two firms, boosting optimism after July's sell-off. The Kospi gained as much as 5.1%, and global funds added over 2 trillion won (US$1.4 billion) worth of Kospi shares as of mid-Wednesday. Temasek did not immediately comment, but analysts see the potential investment as a sign of strong foreign confidence in Korea's AI/memory cycle.", "body_md": "# SK Hynix, Samsung shares rally as report of Temasek’s investment plans boosts optimism\n\nBoth firms saw a brutal sell-off in July as doubts grew over the pace of rapid AI infrastructure buildout\n\nSOUTH Korean chipmakers rallied as risk appetite returns after July’s rout, with a local media report of investment plans by Singapore’s Temasek supporting sentiment.\n\nShares of Samsung Electronics and SK Hynix extended gains to more than 8 per cent, after Asia Business Daily reported that the Singapore investment company plans to invest directly in the two chipmakers through its internal investment team, and is mulling timing. The benchmark Kospi [gained as much as 5.1 per cent.](https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/asian-tech-stocks-rise-oil-advances-south-koreas-kospi-2-8)\n\nThe chipmakers saw [a brutal sell-off in July](https://www.businesstimes.com.sg/companies-markets/south-koreas-kospi-posts-biggest-fall-early-march-chipmakers-slump) as doubts grew over the pace of rapid AI infrastructure buildout, leading to an unwinding of leveraged positions. The shares have been rebounding recently, amid growing expectations the companies will bolster shareholder returns with buybacks and more dividends.\n\nSK Hynix last Friday (Aug 7) said it will unveil shareholder-return details in the third quarter. Samsung Electronics is expected to follow suit, with KB Securities analysts expecting a more than tenfold increase in shareholder returns.\n\nTemasek did not immediately comment on the report when contacted by Bloomberg.\n\n“This hints at long-term investors’ improving appetite for South Korea’s deeply-undervalued semiconductor sector,” said Lee Homin, a senior macro strategist at Lombard Odier Singapore. “More aggressive foreign institutions are likely to view these key names as an opportunity, especially if retail-driven volatility subsides.”\n\nThe valuations of the memory chipmakers have come down to record low levels following the July rout. Samsung and SK Hynix are trading at 4.2 and 3.6 times forward earnings, respectively, compared with more than 21 times for the Philadelphia Semiconductor Index of global chip peers.\n\nGlobal funds added more than 2 trillion won (US$1.4 billion) worth of Kospi shares as of mid-Wednesday, while retail traders sold.\n\nIf confirmed, the investment would signal “strong foreign confidence in Korea’s AI/memory cycle,” said Ha SeokKeun, chief investment officer at Eugene Asset Management. It would be one of the drivers supporting a Kospi rebound, he added. BLOOMBERG\n\nDecoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. 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Analysts see DBS, OCBC ahead on wealth\n\nLaos-China Railway picks up steam, but S-E Asian country struggles to capture gains", "url": "https://wpnews.pro/news/sk-hynix-samsung-shares-rally-as-report-of-temaseks-investment-plans-boosts", "canonical_source": "https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/sk-hynix-samsung-shares-rally-report-temaseks-investment-plans-boosts-optimism", "published_at": "2026-08-12 05:55:50+00:00", "updated_at": "2026-08-12 06:05:06.584911+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure"], "entities": ["Samsung Electronics", "SK Hynix", "Temasek", "Kospi", "Bloomberg", "Lombard Odier Singapore", "Eugene Asset Management", "KB Securities"], "alternates": {"html": "https://wpnews.pro/news/sk-hynix-samsung-shares-rally-as-report-of-temaseks-investment-plans-boosts", "markdown": "https://wpnews.pro/news/sk-hynix-samsung-shares-rally-as-report-of-temaseks-investment-plans-boosts.md", "text": "https://wpnews.pro/news/sk-hynix-samsung-shares-rally-as-report-of-temaseks-investment-plans-boosts.txt", "jsonld": "https://wpnews.pro/news/sk-hynix-samsung-shares-rally-as-report-of-temaseks-investment-plans-boosts.jsonld"}}