Samsung Electronics and SK hynix shares are surging as gains in U.S. AI chip and technology stocks overnight revive investor sentiment and draw bargain hunters.
Analysts say expectations are growing that overall AI investment will remain intact despite concerns over tighter regulations on AI data centers.
As of 10:16 a.m. on Tuesday, semiconductor leader SK hynix is trading at 1,198,000 won, up 62,000 won (5.46%) from the previous close. Although SK hynix has risen for two consecutive days, it has not yet recovered the losses from the preceding four trading sessions. KOSPI heavyweight Samsung Electronics is also trading at 197,400 won, up 7,500 won (3.95%) from the previous close. The daily price movements of Samsung Electronics mirror those of SK hynix.
At this moment, so-called "S7" stocks linked to these companies through business and shareholding ties are also uniformly strong. These include SK hynix (5.40%), Samsung Electronics Preferred Shares (4.57%), Samsung Electro-Mechanics (3.91%), Samsung Life Insurance (3.16%), and Samsung C&T Corporation (2.60%).
Semiconductor investment demand is spreading to small- and mid-cap stocks as well. In the KOSDAQ semiconductor equipment sector, Co-Sec is trading at 29,650 won, up 5,050 won (20.53%) from the previous close, as of this moment. SFA Semiconductor (18.23%), Exicon (15.31.), Iotech (14.14%), TFE (12.54%), Neo-Sem (11.16%), CEC (11.53%), Jestem (11.18%), and Lotis Bell (10.90%) are also showing double-digit gains.
Both major stock exchanges have gained momentum. Buy-side sidecars (futures market circuit breakers) were triggered in the KOSPI and KOSDAQ at the start of trading. This marks the ninth time this year that buy-side sidecars have been triggered simultaneously on both major exchanges.
The strength in the semiconductor sector today is influenced by the New York stock market overnight. On the 9th (local time), AMD surged 13.26%. Marvell Technology (9.49%), Broadcom (8.78%), Micron Technology (6.25%), and SK hynix American Depositary Receipts (ADR, 5.53%) also closed higher.
On the same day, NVIDIA fell more than 8.7% intraday, but overall investor sentiment toward AI semiconductors remained positive.
Although NVIDIA Chief Executive Officer (CEO) Jensen Huang acknowledged an extramarital relationship with a female businessperson suspected of being a Chinese spy, and the board of directors has begun investigating related allegations, the prevailing view is that this should not be seen as a negative factor for the entire AI industry.
On that day, the S&P 500 index rose 2.35%, the Dow Jones Industrial Average rose 2.15%, and the tech-heavy NASDAQ index rose 2.74%.
The market views the decline in international oil prices and bargain-hunting buying in tech stocks as having led to improved investor sentiment. U.S. President Donald Trump's remarks downplaying the possibility of a military attack on Iran also appear to have had an impact.
Securities firms interpreted this as a result of growing momentum behind the forecast that the total volume of AI investment will be maintained.
Lee Kyung-min, a research analyst at Daishin Securities, stated, "Recently, the entire AI value chain plunged due to concerns over stricter regulations for AI data centers," but added, "However, perceptions are spreading that delays in new data center permits may slow the pace of investment execution, but will not directly lead to a decrease in the total volume of AI investment."
Lee Su-rim, a research analyst at DS Securities, said, "The investment appeal of Samsung Electronics can be found in its profit growth next year and the scale of profits it can maintain even after price adjustments," adding, "Similarly for SK hynix, the scale of profits that can be maintained after price adjustments supports its medium-term investment appeal."
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