Investors in supplier Nvidia get a signal from the stock exchange - after shares surge 240%

The South Korean stock exchange issued a warning "on caution when investing" in the shares of SK Hynix, which supplies high-speed memory (HBM) including for Nvidia, Bloomberg writes. The platform felt that these securities might be overheated, the agency explains. On Monday, November 3, the value of SK Hynix increased by almost 11%, and since the beginning of the year - by 240% amid a global rally in stocks related to artificial intelligence.

The exchange said the warning would remain in effect for one day. Similar signals, rare for companies with large capitalization, were also received last month by traders investing in South Korean industrial conglomerate Doosan and shipbuilding company Hanwha Hanwha Ocean Group, Bloomberg notes. The mechanism is triggered by sudden or unexplained jumps in trading volumes and prices and does not stop trading, but notifies investors of possible risks, the agency explains. If, after such a warning, shares rise by 40% over two sessions, trading can be suspended for a day.

At the trading on November 4, SK Hynix shares fell by 5.5% - this is the strongest decrease in quotations for three weeks.

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