Taiwan, South Korea Climb to 6th and 8th in Stock Rankings as AI Lifts $9.1 Trillion
Updated
Updated · CNBC · May 20
Taiwan, South Korea Climb to 6th and 8th in Stock Rankings as AI Lifts $9.1 Trillion
2 articles · Updated · CNBC · May 20
$4.7 trillion Taiwan has overtaken Canada as the world's sixth-largest stock market, while $4.4 trillion South Korea has passed the U.K. for eighth, according to HSBC market-cap data.
AI-driven chip demand is powering the jump: TSMC now makes up more than 40% of Taiwan's market, and Samsung Electronics plus SK Hynix account for a record 42.2% of South Korea's Kospi.
That rise has been unusually fast and narrow, with strategists saying both markets have effectively become proxies for AI hardware and semiconductor supply chains.
$13 billion of foreign selling hit South Korean stocks late last week, underscoring how concentration risk and Samsung labor-strike concerns could make the gains vulnerable to reversal.
The reshuffle highlights how AI is redirecting global equity-market power toward semiconductor hubs, even as heavily concentrated markets such as Denmark and Saudi Arabia show how quickly sentiment can turn.
Taiwan and Korea's markets are now AI proxies. Is this extreme concentration a path to wealth or a catastrophic risk?
As AI chips become 'the new oil,' which nations will be left behind in the global economic reshuffle?
North Asia’s Market Surge: The $9 Trillion AI and Semiconductor Revolution in South Korea and Taiwan
Overview
North Asia, led by South Korea and Taiwan, is quickly becoming a major force in global finance. Their stock markets now rival those of Europe, thanks to strong export performance and a central role in the booming artificial intelligence sector. With market capitalizations exceeding $4 trillion each, these economies are now key players in the global technology supply chain. Their rapid growth highlights a significant shift in global market rankings, as their involvement in AI and technology exports drives both financial prominence and increased influence on global investment strategies.