$Lumentum(LITE)$ Tech stocks are rallying as SK Hynix adds to the AI optimism. SK Hynix posted a 632% jump in Q3 operating profit to $62.8B, and that gave a lift to AI-linked names across the board. Samsung, Kioxia, and TSMC also moved up.
Asian tech firms surged after SK Hynix delivered blockbuster earnings, which helped restore confidence in the AI trade ahead of results from Microsoft and Alphabet.
The sector had wobbled recently on renewed concerns about heavy investment spending, profitability, and balance sheets, but AI-linked stocks are back on the front foot now.
SK Hynix, which has been at the center of the chip boom, said third-quarter operating profit soared 632 percent to $62.8 billion on explosive demand for its advanced semiconductors.
While Wall Street keeps debating whether the AI arms race can finance itself, SK Hynix just reminded the market that someone on the other side of all that capex is receiving the cheque.
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