SK Hynix ADRs are trading at a premium of over 50% compared to their Seoul line, reflecting strong global investor demand for exposure to AI hardware. Despite a recent 6.2% rally, the Kospi index is still 20% below its June peak, even as SK Hynix's shares have risen 8.8%.
ASML Holding, a Dutch supplier of semiconductor-making equipment, has reported sales and margin forecasts for the current quarter that are above expectations. The company projects sales between 11 billion and 12 billion euros in Q3, surpassing the estimated 10.34 billion euros. ASML's gross margin is expected to be between 55% and 57%, which is higher than the forecasted 52.2%. Following this news, ASML shares rose 5.8% to 1,646.40 euros.
Ericsson is facing challenges related to surging component prices and skepticism from the market regarding its ability to offset these costs. The company has issued weaker gross margin guidance for Q3 due to new project rollout costs. However, Ericsson plans to mitigate these costs through product substitution, supply-chain actions, and contract renegotiations. Operating expenditure is projected to drop to 78 billion Swedish kronor this year, and a new licensing deal is expected to improve margins. Despite these efforts, Ericsson's shares fell 0.4% to 98.12 kronor.
