SK Hyundai Electronics once again boosted chip stocks on Wednesday.

This South Korean chip manufacturer has always been regarded as a representative enterprise in the boom of memory chips. On Tuesday, the company announced record-breaking results, with third-quarter profits increasing by 632% year-on-year to over $62 billion, and both revenue and operating profit significantly exceeded Wall Street's expectations. These impressive results drove SK Hynix to rise nearly 11% in the South Korean market, and its American-listed depositary receipts rose by 10%.

This strong financial report also injected new momentum into the broader chip sector on Wednesday. The company also stated that, in the foreseeable future, demand for memory chips will exceed supply.

Cross-asset analyst Nic Puckrin stated: "Hynix SK has almost single-handedly saved investors' sentiment today. It just announced a 328% increase in revenue, and even more astonishingly, a 632% increase in operating profit. But most importantly, it has finally shown investors a bright outlook. The company said that by 2029, nearly all of its storage capacity has been reserved."

However, the performance of SK Hynix has indeed become a catalyst for optimism. Its Korean rival, Samsung Electronics, saw a 9% increase in the Korean market.

In the US market, the main chip stocks that saw increases include:

• Micron Technology: +3.5%
• Intel: +2%
• Arm Holdings : +2%
• Broadcom: +2%
• Supermicro Semiconductor: +1.5%

The sector leader, NVIDIA, saw a slight increase of just under 1%. Roundhill Memory ETF rose by 4.5%.

SK Hynix's earnings announcement came a week after the South Korean market released more bearish signals; at that time, these signals caused turmoil in AI trading in both the local South Korean and American markets. The AI cloud platform, which is considered the hottest IPO in South Korea this year, saw its stock price plummet by 32% on its first day of trading, raising concerns among the market about whether investors are still willing to continue buying into AI stocks with high valuations.

The sharp drop in the stock price of Elice once dragged down SK Hynix and Samsung, causing both to decline. However, on Wednesday, their financial reports, which far exceeded expectations, have once again made these two South Korean chip manufacturers the focus of the market. Samsung is scheduled to release its financial report on Thursday, October 29th, and now the market's attention to their performance has further increased.

Trade Nation Chief Market Strategist David Morrison pointed out: "These two companies, together with Micron Technology of the United States, account for approximately 90% of the global design and manufacturing of storage chips. Therefore, by considering them together, they serve as a reliable barometer to measure the strength and vulnerabilities of this key component in the development of AI's infrastructure."