Micron Gains Nearly 5% But Trails SK Hynix — Singapore’s Temasek May Be Key

According to The Barron's, Micron Technology (MU-US) shares rose on Wednesday alongside other chip stocks, but underperformed its two major competitors—SK Hynix (SKHY-US) and Samsung Electronics—possibly due to developments linked to Singapore.

Micron closed up 4.92% on Wednesday, continuing its rebound after six weeks of steep declines. Although its stock is still up 175% year-to-date, concerns over whether chip prices can sustain momentum have caused Micron to fall nearly 10% over the past month.

However, South Korean rival SK Hynix delivered stronger performance and remains a Wall Street analyst favorite. SK Hynix’s ADR surged 9% on Wednesday, while its locally listed shares gained 5.5% in South Korea.

The sharp rise in SK Hynix’s share price followed a report from South Korea’s Asia Business Daily stating that Temasek, Singapore’s $400 billion state-owned investment firm, plans to directly invest in SK Hynix and is currently evaluating the timing of such an investment.

The report also indicated Temasek intends to invest in fellow chipmaker Samsung Electronics, sending Samsung’s Seoul-listed shares up 6.7% on Wednesday. The news lifted the entire South Korean equity market, with the KOSPI index rising 3.7%.

A Temasek spokesperson told Barron’s the group did not seek advice from the South Korean government on investment timing. They added, as stated by Asia Business Daily, this would not be Temasek’s first investment in either company or the South Korean stock market.

Temasek declined to confirm or deny whether it is currently making new investments in SK Hynix and Samsung Electronics, or has already done so.

If Temasek’s investment decision is confirmed, further inflows into recently sold-off chip stocks could accelerate SK Hynix’s recovery. This should also benefit Micron, as overall market sentiment in the memory industry would improve.