Superconductor breakthrough ignites stock market despite skepticism
Unverified reports of a groundbreaking advancement in superconductor technology have ignited stock market surges in various Korean and Chinese companies, despite skepticism from the scientific community.
In Seoul, lesser-known entities such as Duksung Co Ltd (KS:004835), Sunam Co Ltd (KQ:294630), and Shinsung Delta Tech Co Ltd (KQ:065350) experienced an impressive second-day leap hitting their daily growth ceiling at 30%. Similarly, Jiangsu Fasten Co Ltd (SZ:000890) and Innovation New Material Technology Co Ltd (SS:600361) saw their stocks rise to the maximum limit of 10% for two consecutive sessions in China.
The stock surge is attributed to a July report by South Korean scientists who declared they had successfully created the world’s first superconductor capable of conducting electricity under regular room temperature and pressure conditions. This pioneering conductor uses a lead-based substance known as LK-99.
Jefferies Financial Group Inc.’s analyst Nick Cheng speculated that if LK-99 could be validated and mass-produced, it has the potential to disrupt numerous industries significantly. The material could facilitate lossless power transmission cables promoting energy conservation while also paving the way for innovations within computer chip manufacturing, rail transportation systems, and medical imaging technologies among others.
Enthusiasm escalated following the circulation of a video showcasing Chinese researchers replicating these findings from their Korean counterparts. However, Cheng cautioned against excessive optimism noting that commercializing this innovation appears challenging due to LK-99’s apparent lack of malleability required for wire production.
A Science journal article dated July 27 stated that should this discovery hold; it would mark one of condensed matter physics’ most significant breakthroughs potentially opening doors to remarkable technological advancements. However, insufficient details provided by the Korean team have left many physicists questioning its validity.
Despite lingering doubts within scientific circles regarding this purported revolutionary discovery, investors remain undeterred with American Superconductor Corporation (NASDAQ:AMSC), a currently unprofitable company witnessing a record-breaking surge by 60% on Tuesday, with trading volumes exceeding its average daily count by more than forty times.