South Korea’s Kospi has re-entered bull market territory, rising more than 20% from its July low and crossing 7,000 as memory chip stocks led the rebound. Sandisk jumped 13.7% to close at $1,528.11 after guiding mid-to-high-teens revenue growth through fiscal 2030 and near-80% adjusted gross margins, while Evercore cited $93.9 billion in multiyear customer agreements and peers Micron (+4.2%), SK Hynix (+7.3%), Seagate (+4.9%) and Western Digital (+7.3%) also rallied. Analysts warn the move may be driven by technical fund flows and could be short-lived around the holiday window, but the risk-on momentum could support broader risk assets including crypto and DeFi adoption.

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In Brief

Kospi entered a bull market, up over 20% from its July low.
Sandisk jumped 13.7% on a bullish 2030 growth outlook Thursday.
Nikkei, Kospi and Kosdaq all rose Friday on chip-sector strength.

South Korea’s Kospi index climbed back into bull market territory this week. It has risen more than 20% from its July low as memory chip stocks led a broad recovery.

The rally accelerated Thursday when Sandisk (SNDK) jumped 13.7% on a bullish long-term outlook. The momentum carried into Asian trading Friday.

Sandisk’s Long-Term Plan Sparks the Rally

Sandisk stock closed at $1,528.11 on Thursday after executives detailed a plan for consistent revenue growth through fiscal 2030. The company guided to mid-to-high-teens revenue growth and adjusted gross margins near 80%.

Sandisk’s plan has investors excited. Image Source: Trading View

Chief Financial Officer Luis Visoso outlined the payout plan for investors.

“We are optimizing for growth, sustainability and returns. As we do that, we expect to return 100% of excess cash to our shareholders after investing in the business.”

Evercore ISI’s Amit Daryanani pointed to new multiyear customer agreements worth $93.9 billion across eight clients, including three U.S. hyperscale data center operators, as the basis for his reiterated outperform rating.

Chip Stocks Rally Across Two Continents

Micron (MU) rose 4.2% and SK Hynix (SKHY) gained 7.3% Thursday. Hard-drive makers Seagate (STX) and Western Digital (WDC) climbed 4.9% and 7.3%, respectively.

The chip rally returns theme extended into Friday’s Asian session. Japan’s Nikkei 225 jumped 1.73%, the Topix added 0.92%, and the Kospi advanced 2.11%. The small-cap Kosdaq, where KOSDAQ stocks surged even during last month’s slump, gained 0.84%.

The Kospi crossed 7,000 points for the first time in 15 trading days.

Kospi is back in bull market territory, but still down in the last month. Image Source: Trading View

Is Kospi’s Bull Market Built to Last?

Not everyone agrees the move marks a durable shift. KB Securities’ Peter Kim said the earlier sell-off was driven by technical factors and fund flows, not doubts about semiconductor earnings, and that the unwinding of leveraged positions has since eased.

Jung In Yun of Fibonacci Asset Management Global was more cautious.

“I would be cautious about describing this as a completely new bull market.”

With South Korea’s holiday weekend approaching and the index up over 10% in five trading days, whether foreign inflows keep supporting the 7,000 level may hinge on how long Sandisk’s confidence spreads through the rest of the memory chip sector.

Read the article at BeInCrypto