TLDRTemasek, Singapore’s sovereign wealth fund, is preparing to make direct investments in Samsung and SK HynixShares of both South Korean semiconductor manufacturers surged more than 7%, lifting the KOSPI index by over 4%The investment would represent Temasek’s inaugural direct stake in South Korean equitiesThe sovereign fund believes memory chip manufacturers are undervalued within the AI supply chainPositive earnings from CoreWeave and Super Micro provided additional momentum for Asian chip stocksShares of Samsung Electronics and SK Hynix experienced a dramatic surge on Wednesday following reports that Temasek, Singapore’s state-backed investment fund, intends to acquire stakes in both semiconductor companies.According to Asia Business Daily, Temasek has engaged with South Korean government officials to coordinate the timing of these investments. The fund has chosen to execute the transactions directly through its internal investment team, bypassing external asset management firms.Stock Prices Climb More Than 7%Both Samsung and SK Hynix experienced gains exceeding 7% during Korean trading sessions. The KOSPI benchmark index advanced more than 4% on the announcement.SK hynix Inc., SKHYThe two companies have delivered exceptional performance throughout 2026. Year-to-date gains exceed 100% for each stock, fueled by robust demand for memory semiconductors deployed in artificial intelligence applications.Wednesday’s advance follows a challenging period for both manufacturers. The stocks experienced significant declines in July amid growing skepticism about AI infrastructure investment momentum. This triggered forced selling from investors holding leveraged positions.A gradual recovery has emerged over recent weeks. Investor sentiment has improved partly on speculation that both corporations will enhance shareholder return programs to bolster stock valuations.Sovereign Fund Identifies Undervaluation in Memory SectorTemasek oversees a net investment portfolio valued at approximately S$518 billion, equivalent to roughly $404.5 billion. It ranks among the world’s most significant sovereign wealth funds.According to reports, the fund has concluded that memory chip manufacturers remain undervalued relative to other components of the AI supply chain. This marks Temasek’s first direct equity investment in South Korean companies.Temasek has not issued any statement in response to media inquiries from Bloomberg and other news organizations.The investment news amplified a broader advance among Asian semiconductor stocks. Japan’s Advantest, Kioxia Holdings, and Murata Manufacturing posted gains ranging from 0.8% to 3.5%.Semiconductor Manufacturing International in China increased 4%. Taiwan Semiconductor Manufacturing Company rose 0.8% in Taipei.Regional gains received additional support from U.S. corporate earnings announcements. CoreWeave and Super Micro both delivered strong quarterly results, strengthening investor conviction that AI-driven semiconductor demand remains robust.The semiconductor sector faced headwinds throughout much of June as concerns mounted regarding excessive valuations. The early August recovery has altered market sentiment.Kioxia’s financial results provided encouraging signals. CoreWeave’s performance also alleviated worries about decelerating AI expenditure growth.For Samsung and SK Hynix specifically, the Temasek development provided investors with renewed conviction. A direct investment from a prominent sovereign wealth fund signals institutional confidence in the companies’ long-term prospects and fundamental value.The post Samsung and SK Hynix Stocks Soar 7% on Temasek Investment News appeared first on Blockonomi.