SK Hynix shares jump 8% as Temasek considers investment🗽 Is the memory chip sector back in favor?

Samsung Electronics and SK Hynix shares are gaining today following reports that Singapore’s Temasek is preparing to make a direct investment in the two semiconductor manufacturers. SK Hynix ADRs are up nearly 8% in U.S. trading, reaching around $153 per share. The news comes at a favorable time for the sector, as results from CoreWeave and Super Micro Computer have once again pointed to strong demand related to the expansion of AI infrastructure. The reaction is not limited to the two companies: the KOSPI gained more than 3.5% today, while positive sentiment has spread to other Asian, European and U.S. semiconductor stocks.

• Temasek, which manages a net portfolio worth approximately SGD 518 billion ($404.5 billion), is reportedly preparing to directly purchase shares in Samsung Electronics and SK Hynix.
• According to reports, the fund sees memory chipmakers as a relatively undervalued part of the AI supply chain, particularly compared with other beneficiaries of the AI investment boom.
• Samsung and SK Hynix shares are up more than 7%, while both stocks have already delivered gains of more than 100% since the beginning of 2026.
• Temasek has not confirmed the media reports so far, meaning the market is currently pricing in the prospect of a transaction rather than a finalized investment.

Why is Temasek looking at memory chips?

The most interesting part is not the potential purchase itself, but the logic behind it. For a long time, the AI trade has focused primarily on GPUs, servers and providers of computing capacity. As AI models continue to scale, however, memory is becoming increasingly important, as even the most advanced processors cannot efficiently handle enormous volumes of data without sufficient high-performance memory.

This puts SK Hynix and Samsung in a strategically important position within the AI supply chain. If Temasek indeed views memory manufacturers as undervalued, the investment would represent a bet not only on continued growth in AI spending, but also on a larger share of the value generated by the AI boom shifting toward memory suppliers.

The development is also significant from a sentiment perspective. The July correction showed how quickly investors can react to concerns about the pace of data-center investment. A larger commitment from a major long-term institutional investor could therefore be interpreted as a signal that the sector’s fundamentals remain attractive even after both stocks have more than doubled since the beginning of the year.

AI once again drives semiconductor stocks

Temasek is not the only factor behind today’s gains. Strong results from CoreWeave and an upbeat outlook from Super Micro Computer have eased concerns that the largest wave of AI infrastructure spending may already be losing momentum. The positive reaction has spread to companies including Advantest, Kioxia, SMIC and TSMC.

For Samsung and SK Hynix, however, the key question is whether enormous AI-related demand for memory can translate into sustainable earnings growth rather than simply another phase of the semiconductor industry’s traditional cycle. Reports surrounding Temasek reinforce the narrative that memory stocks may still offer attractive valuations relative to other parts of the AI supply chain, but after such a powerful rally, the bar for future earnings has also moved considerably higher.

SK Hynix ADR share price chart, SKHY.US (D1 interval)

Source: xStation5