Dell Rally Lifts Samsung and SK Hynix After Selloff

Dell’s 15.8% jump after its quarterly report helped lift Samsung Electronics and SK Hynix shares in early Seoul trading, reversing a prior selloff that pushed both stocks lower.

Samsung rose 1.2% to 253,500 won and SK Hynix added 1.5% to 1.637 million won in early trading. Both companies had fallen more than 4% the previous day, when higher oil prices, rising U.S. Treasury yields and foreign selling weighed on technology stocks and the KOSPI dropped nearly 4%.

Overnight, the U.S. 10-year Treasury yield pulled back from an intraday high near 4.82%, and several U.S. chip names posted gains, which eased some selling pressure on Asian technology shares.

Dell reported second-quarter revenue of $47 billion and adjusted earnings of $7.04 a share, beating analyst estimates. The company said it booked a record $60.9 billion in AI-server orders, generated $16.4 billion in AI-server revenue for the quarter and finished with a $95 billion backlog. Dell raised its AI-server revenue forecast to $74 billion from $60 billion.

Vice Chairman and Chief Operating Officer Jeff Clarke told investors the biggest constraints remain ‘DRAM, followed by NAND, NAND,’ and he noted shortages across other parts of the server supply chain.

That supply comment relates to the product lines of the Korean memory firms: SK Hynix supplies high-bandwidth memory used with AI accelerators, while Samsung makes HBM, conventional DRAM and NAND flash.

Several Wall Street firms raised price targets for Dell after the report. Citi increased its target to $600 from $515 and kept a Buy rating, describing the quarter as a ‘clear beat.’ Morgan Stanley raised its target to $499 from $434 and cited continued investment in AI across cloud, hybrid and on-premises environments. Mizuho moved its target to $600 from $500 and retained an Outperform rating.

Local analysts said the prior day’s weakness did not necessarily reflect company fundamentals. Han Ji-young of Kiwoom Securities described the weakness as a temporary pullback in new buying amid short-term macro uncertainty and added that stronger-than-expected AI-semiconductor sales could lift earnings momentum for leading chip stocks.

Analysts also warned that renewed rises in oil prices or U.S. bond yields could put pressure on technology valuations. Dell’s order and backlog figures and its identification of memory shortages were cited as direct evidence of demand for AI infrastructure running ahead of parts of the supply chain.