Samsung, SK Hynix Jump in Pre-Market on Labor Deal, Nvidia Results
Summary
- In Nextrade's NXT pre-market, Samsung Electronics rose 6.16%% and SK Hynix gained 4.3%%, opening sharply higher.
- Samsung Electronics labor-management talks produced a tentative agreement ahead of a planned general strike, helping restore investment sentiment toward semiconductor shares.
- Nvidia reported strong earnings that extended its record streak to 12 consecutive quarters of revenue growth above prior highs and beat market consensus, supporting gains in related stocks.
Forecast Trend Report by Period
Samsung Electronics Co. and SK Hynix Inc. jumped in pre-market trading on May 21.
As of 8:05 a.m. on Nextrade's NXT pre-market, Samsung Electronics was trading at 293,000 won, up 6.16% from the previous session. SK Hynix rose 4.3% to 1.82 million won.
Investor sentiment improved after Samsung Electronics reached a tentative wage agreement with its labor union a day before a planned strike. Late on May 20, management and labor produced a provisional agreement on pay talks just 90 minutes before a scheduled general strike. If union members approve the deal in a vote, the company will avoid what would have been the largest strike in its history.
The market had worried that a strike at Samsung Electronics could trigger losses of as much as 100 trillion won and damage the semiconductor ecosystem and supply chain, with broader consequences for the national economy. That had weighed on sentiment across chip stocks.
The gains were also supported by Nvidia Corp.'s strong earnings.
Nvidia said on May 20 that first-quarter revenue for its fiscal year, covering February through April, rose 20% from the previous quarter's record to $81.62 billion. That marked a 12th straight quarterly revenue record.
Revenue increased 85% from a year earlier and topped the $78.85 billion market consensus compiled by London Stock Exchange Group, or LSEG. Adjusted earnings per share came in at $1.87, above Wall Street expectations of $1.76.
Nvidia forecast second-quarter revenue of $91 billion, saying the growth momentum would continue. The outlook excludes data-center revenue from China.
Chief Executive Officer Jensen Huang said the build-out of AI factories, which he called the largest infrastructure expansion in human history, is accelerating rapidly. Nvidia runs across every cloud, supports every frontier and open-source model, and is the only scalable platform spanning every place AI is produced, from hyperscale data centers to edge computing, he added.
Noh Jung-dong, Hankyung.com reporter, dong2@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
