The CSOP SK Hynix Daily (2x) Leveraged Product (07709) surged 10.96% during intraday trading on Thursday, driven by soaring demand for memory chips amid the global AI boom.
The rally follows Samsung Electronics' projection of a three-fold jump in fourth-quarter operating profit, highlighting tight supply and robust demand for conventional memory chips used in servers, PCs, and mobile devices. SK Hynix, the underlying asset of the leveraged product, is a key beneficiary of this trend, with analysts noting rising DRAM prices and capacity constraints.
Nvidia CEO Jensen Huang emphasized the need for more fabrication plants to meet "terrific" AI-driven demand, further fueling optimism in the semiconductor sector. Contract prices for DRAM chips have already risen sharply, with TrendForce forecasting additional increases in the current quarter.
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