SK Hynix led Asian chip stocks higher after Monday's rout, but a fund manager warns of "concerning behavior" and a potential "rude shock" in AI.
SK Hynix led a broad rally in Asian technology shares Wednesday, rebounding after the South Korean memory chipmaker's biggest-ever one-day decline on Monday. The stock jumped 11% in Seoul.
Domestic rival Samsung Electronics rose 6.8%. Seoul Semiconductor added 6.4%.
The gains spread across Japan's chip sector. Advantest climbed 4.2%. Lasertec gained 6.4%, and Disco rose 2.8%. SoftBank Group advanced 0.8%, while Tokyo Electron added 0.9%. Renesas Electronics slipped 0.2%.
The move tracked a rebound on Wall Street, where the VanEck Semiconductor ETF rose 2.5%. Micron Technology and Lam Research each climbed about 5%. Applied Materials and Teradyne gained more than 3%. AlphaScala's model rates Applied Materials and Micron at 65 and 70, respectively, both in the Moderate range.
Despite the bounce, some investors cautioned that the enthusiasm around AI hardware stocks is becoming stretched. Jordan Cvetanovski, chairman and chief investment officer at Pella Funds, told CNBC's "Squawk Box Asia" that he is "starting to see some really concerning behavior in markets." The volatility lately, he said, were "all the classic signs that we are in for a kind of rude shock coming in the AI space."
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