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South Korea’s Semiconductor Company surged 1200% on AI boom

The nearly 1,200% share-price leap in Hanmi Semiconductor Co. since the end of 2022 has some investors seeking to cash out amid scorching valuations.

Tweet on Henmi stock fluctuation

Bloomberg chart

Hanmi Semi is the most expensive stock on a regional gauge of chip-related peers, relative to forward earnings estimates. That makes positives including demand for the South Korean firm’s AI-related chipmaking equipment and buying of the stock by its billionaire chief executive look more than fully priced in.

Foreign investors have started to pare holdings after pouring money into the shares last year. Foreign ownership of Hanmi Semi declined to 13.2% as of Wednesday from 16.5% in mid-February.

“People who bought out of ignorance have left, and now some investors are having second thoughts,” said Yoon Joonwon, a fund manager at DS Asset Management Co. Foreigners may still be attracted to the potential but are less certain now, while local funds “seem to be holding despite doubts.”


Image: Semiconductor chip