South Korea's KOSPI Index hits a record high, SK Hynix and Samsung continue their rally riding the AI wave

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Investing.com - On Monday, South Korea’s benchmark stock index KOSPI hit a record high, with chip manufacturers continuing to rise driven by optimistic AI sentiment and tightening memory supply.

The KOSPI index surged as much as 5%, reaching a historic high of 7,876.60 points at 03:28 GMT.

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SK Hynix (KS:000660) also hit a record high on Monday, with intraday gains reaching up to 13%.

Competitor Samsung Electronics (KS:005930) also surged significantly, continuing its recent strong trend—previously boosted by optimistic expectations for AI chip demand, Samsung’s market value has surpassed $1 trillion.

Reuters reported last week that SK Hynix received “unprecedented” orders from several large tech companies, all competing to secure high-end memory chips for AI servers.

The report pointed out that, as available chip manufacturing capacity has nearly run out, some customers have proactively proposed funding new production lines and helping to share the high costs of ASML lithography equipment.

KS11+4.54%000660+11.74%005930+6.15%

South Korea KOSPI

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7,838.44

▲+340.44(+4.54%)

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KS11+4.54%000660+11.74%005930+6.15%

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The root cause of this supply shortage is the surge in demand for high-bandwidth memory (HBM) chips—tech giants like Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) are driven by the strong demand for AI accelerators, which is the main force behind this trend.

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