On June 8, United Microelectronics Corporation (UMC) rose 5.38% overnight, trading at $20.5/share with trading volume of $74,100, ending a multi-session correction.
On the news front, the semiconductor sector staged a broad-based rebound, with Marvell Technology up 9.21%, Micron Technology up 5.19%, and Advanced Micro Devices up 2.38%, significantly lifting sector sentiment. Meanwhile, UMC previously reported May revenue of NT$22.94 billion, representing a 17.8% year-over-year increase, extending its growth momentum.
After accumulating a pullback exceeding 15% due to elevated valuation concerns (TTM P/E ratio approximately 35.5x versus a five-year median of 11.8x), UMC's solid fundamentals attracted capital inflows. The company reported Q1 net profit surging 108% year-over-year to NT$16.17 billion with gross margin reaching 29.2% and capacity utilization recovering to 79%. Additionally, UMC has confirmed selective price increases of approximately 10% for the second half, providing continued earnings growth support.
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