Asian chipmakers fuel KOSPI surge as AI investor frenzy intensifies
Updated
Updated · Reuters · May 7
Asian chipmakers fuel KOSPI surge as AI investor frenzy intensifies
10 articles · Updated · Reuters · May 7
In Seoul and Taipei, Samsung’s chip revenue jumped nearly 50-fold, first-quarter profit rose eightfold, and retail investors’ leveraged KOSPI buying hit a record 25 trillion won.
TSMC, Samsung and SK Hynix now dominate Asia’s market value rankings, benefiting from AI demand from Nvidia and major US tech groups under multi-year supply agreements.
The boom is lifting Taiwan and South Korea’s economies, but analysts warn stretched sentiment, leveraged ETFs and any slowdown in AI funding could expose overheating risks.
While chipmakers' stocks surge, will the AI revolution deliver real value or just enrich a handful of hardware suppliers?
Beyond chip shortages, will the massive power and water needs of AI become the next bottleneck for global tech growth?
With consumer hardware prices soaring, is the AI boom creating a permanent tech affordability crisis for everyone else?
AI Memory Chip Demand Fuels South Korea’s Historic Stock Market Rally in 2026
Overview
On May 6, 2026, South Korea's KOSPI index surged past 7,000 points, driven by record profits from semiconductor leaders Samsung Electronics and SK Hynix, whose stocks rose sharply and pushed Samsung into the $1 trillion market cap club. This rally was fueled by soaring global demand for High Bandwidth Memory (HBM) chips essential for AI, causing a shift in production that led to shortages and soaring prices in traditional memory markets. Intense buying by foreign investors and strong retail participation amplified the surge, though analysts warn of risks from market concentration and high leverage. Meanwhile, geopolitical tensions and supply constraints loom, shaping the future of this booming but volatile sector.