SK Hynix and Samsung Electronics Soar to Record Highs as AI Deals Drive South Korean Chip Market
Shares of South Korean tech giants SK Hynix and Samsung Electronics surged to record highs on Friday, fueled by a wave of optimism surrounding artificial intelligence (AI) deals. SK Hynix jumped 10%, while Samsung Electronics climbed nearly 6%, marking fresh peaks in their stock prices. Investors returned from a nearly weeklong holiday with renewed confidence, betting that the companies stand to gain from the rapidly expanding AI sector.
The rally was largely influenced by the recent OpenAI and AMD partnership, in which OpenAI could acquire a 10% stake in Advanced Micro Devices (AMD). This announcement sparked a strong surge in AMD shares, which have risen more than 40% over the past week. The deal signals increasing collaboration between AI innovators and chip manufacturers, further cementing South Korea’s position as a key player in the global semiconductor market.
Nvidia also saw gains this week, rising 2.6% after CEO Jensen Huang highlighted a recent surge in demand for AI chips. Huang confirmed Nvidia’s role in financing Elon Musk’s AI startup, xAI, expressing excitement about the “unique financing opportunities” in the AI space. These developments have collectively boosted investor sentiment in the technology sector across Asia.
Despite the chip rally, broader Asia-Pacific markets showed a mixed performance. Japan’s Nikkei 225 dropped 0.33%, and the Topix fell 0.92%, while South Korea’s Kospi rose 0.66% following the holiday break. Australia’s S&P/ASX 200 declined 0.26%, and China’s CSI 300 slid 1.01%, reflecting ongoing caution as investors weigh economic signals and global market trends.
Wall Street also showed signs of slowing momentum overnight. The S&P 500 dipped 0.28%, the Nasdaq Composite slid 0.08%, and the Dow Jones Industrial Average fell 243 points amid continued uncertainty over a potential U.S. government shutdown. Analysts suggest that while tech stocks are buoyed by AI-related news, broader market sentiment remains sensitive to economic and geopolitical developments.
source: cnbc