Chip-related equities showed renewed upside in premarket activity on Tuesday after a sharp pullback in the sector the day before. The Philadelphia Semiconductor Index recorded a 4.8% decline in the previous session, and traders moved to buy names that had been pressured.
SK Hynix American Depositary Receipts were the most notable movers in early US trading. SK Hynix ADRs climbed 6.8% in premarket trade. The underlying South Korean-listed stock had earlier in its trading day fallen as much as 9%, before moving higher.
US-listed memory and storage companies were among the stronger performers in premarket trading:
- Sandisk rose 5.4% in premarket trading.
- Western Digital advanced 3.7%.
- Micron increased 3.2%.
- Seagate gained 3.1%.
Manufacturers of chip production equipment also posted gains ahead of the regular session. Applied Materials and Lam Research each rose 3.5% in premarket quotes. Smaller equipment and test suppliers saw positive moves as well - FormFactor added 3.2% and KLA moved up 3.0%.
Optical component suppliers participated in the early rebound. Lumentum traded up 3.4% and Coherent rose 3.2% in premarket dealing.
The premarket strength comes after the prior session's broad selloff in semiconductor names, with the sector index down 4.8% the day before. Market participants showed selective buying in both memory and equipment-related stocks during the premarket window.
Price moves cited above reflect premarket trading levels reported for the names referenced. The sequence of trading included a volatile session for SK Hynix in South Korea, where the local-listed share price dropped by as much as 9% before the ADRs moved higher in US hours.
Summary of notable premarket moves:
- SK Hynix ADRs: +6.8% premarket, after an intraday drop of up to 9% in South Korea.
- Memory and storage: Sandisk +5.4%, Western Digital +3.7%, Micron +3.2%, Seagate +3.1%.
- Chip equipment: Applied Materials +3.5%, Lam Research +3.5%, FormFactor +3.2%, KLA +3.0%.
- Optical components: Lumentum +3.4%, Coherent +3.2%.