Emerging-market equities hit record high on AI and chip shortage bets
Updated
Updated · Bloomberg · May 11
Emerging-market equities hit record high on AI and chip shortage bets
14 articles · Updated · Bloomberg · May 11
The developing-nations stock gauge rose as much as 1.4% on Monday, with SK Hynix, Samsung Electronics and MediaTek leading gains and South Korea’s benchmark jumping 5% to a record.
Investors piled into semiconductor shares on expectations of an AI-driven memory chip shortfall, helping markets shrug off concerns over stalled US-Iran peace talks.
The rally extends a broader Asia tech surge, after South Korean and Chinese benchmarks climbed sharply earlier as traders bet on an AI supercycle lifting regional chipmakers.
In the U.S.-Iran standoff, whose economic 'pain clock' will run out first as the global crisis deepens?
As the U.S. confronts Iran, is China quietly winning the global race for energy and technological supremacy?
With global markets rattled by war, is South Korea's AI-driven stock surge a sign of strength or a dangerous bubble?
KOSPI Surges Past 7,000: AI Semiconductor Boom, Geopolitical Risks, and the Fragile Foundations of Korea’s Market Rally in 2026
Overview
In May 2026, the KOSPI soared past 7,000 points, driven by explosive global demand for AI hardware and memory chips, which put South Korea at the center of the tech world. This rapid rise was fueled by institutional and high-net-worth investors favoring aggressive leveraged positions over traditional spot buying, pushing the index to new highs. However, this reliance on leverage introduces risks, as a shift in market sentiment could quickly destabilize the rally. The KOSPI’s exceptional performance is thus a paradox—remarkable growth intertwined with potential instability, highlighting both the opportunities and vulnerabilities in Korea’s market.