A 1,200% Surge Tests Nerves of Investors in Korean AI Chip Stock
May 24, 2024 - bloomberg.com
Hanmi Semiconductor Co.'s share price has skyrocketed by nearly 1,200% since the end of 2022, leading some investors to consider selling their shares due to the company's high valuations. The South Korean firm's stock is currently the most expensive among its chip-related peers on a regional scale, based on forward earnings estimates.
Despite the strong demand for Hanmi's AI-related chipmaking equipment and the stock purchases made by its billionaire CEO, these positive factors appear to be more than fully priced into the stock. This has led to concerns about the sustainability of its current share price.
Key takeaways:
Hanmi Semiconductor Co.'s share price has increased by nearly 1,200% since the end of 2022.
Some investors are looking to cash out due to the company's high valuations.
Hanmi Semi is the most expensive stock in its sector, based on forward earnings estimates.
The demand for the company's AI-related chipmaking equipment and the stock purchases by its billionaire CEO are seen as already factored into the price.
