Samsung Electro-Mechanics and LG Innotek shares surge on demand for AI components
Shares of Samsung Electro-Mechanics and LG Innotek surged as demand for AI semiconductor components increased. Samsung Electro-Mechanics closed last 29 day 212million7000 won, while LG Innotek reached 147million4000 won intraday, setting a record high.
Shares of Samsung Electro-Mechanics and LG Innotek have risen sharply recently. Since the start of this month, the two companies’ shares have seen gains of more than 2-fold, with the upward trend continuing. Samsung Electro-Mechanics closed at 29 on 212million7000 won.
LG Innotek rose to 147million4000 won intraday on the same day, setting a record high. The sharp rise in the two companies’ shares was attributed to expectations of improved earnings and future growth. According to reports, the market sees AI-related demand as a key driver.
According to reports, demand for semiconductor substrates and power components is increasing as AI accelerators become more powerful. Samsung Electro-Mechanics’ main products include multilayer ceramic capacitors (MLCCs) and flip-chip ball grid arrays (FC-BGAs). Reports said that rising demand for these products is translating into revenue.
A report said that the companies are operating their core substrate production lines at full capacity. The same report said they are increasing investment to gain an early lead in future robot components. The two companies were cited as beneficiaries of the boom in the market for AI server-related components.
The industry expects the boom in the market for related components to continue if investment in AI servers keeps expanding. As a result, it expects the improving earnings trend at both companies to persist for the time being. Related news was also reported to be reflected in their share prices.
31At the time of the report, specific earnings figures for each company and their long-term investment plans were to be confirmed through additional disclosures. The share of revenue from MLCCs and FC-BGA, along with facility utilization rates, is expected to be reflected in the next earnings announcement. Disclosed information is reflected in market prices.
Sources: 파이낸셜뉴스 산업
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