South Korea's KOSPI Composite Index reached an all-time high of 8,457.09, rising as much as 5.09% in the latest session. According to latest reports, the index has delivered extraordinary returns of 212.84% over the past year, with year-to-date returns of 94.78% and six-month returns of 105.96%. Samsung and SK Hynix together accounted for half of the index by market value, demonstrating the concentrated nature of the AI memory chip rally. The index now trades between 8,220 and 8,457 after spending most of the past decade below 3,000, with the 52-week low of 2,643 now a distant memory.
The exceptional performance is driven by soaring demand for high-end memory chips used in AI chipsets, particularly those designed by Nvidia. As reported by Mirae Asset Securities, memory chip prices doubled in the first quarter from the previous period and are forecast to rise a further 63% in the current quarter. An analyst at Mirae Asset Securities said memory chip demand is expected to continue outpacing supply through 2028, keeping prices elevated. Tighter supply across smartphones, laptops, and automobiles has helped top chipmakers post record profits, with the chain of causality directly linking US AI spending to Korean memory chip manufacturing. US retail investors have also poured billions into a new ETF offering exposure to Samsung and SK Hynix in recent weeks.
SK Hynix crossed $1 trillion in market capitalisation for the first time, reaching a record 1,680 trillion won (₹1.12 trillion) with shares surging as much as 14.9%. This milestone makes South Korea the first country outside the United States to have more than one company surpass $1 trillion in market value, joining Samsung Electronics and Micron Technology in the trillion-dollar memory chip club. Samsung crossed the $1 trillion mark in the first week of May, while Micron reached it just a day earlier. SK Square, which holds a significant stake in SK Hynix, is up 8.04% — a reflection of the holding company discount narrowing as the underlying asset surges.
The AI memory boom has reached new heights with the debut of South Korea's first leverage and inverse exchange-traded funds tracking individual stocks, giving investors a new way to amplify bets on the country's two dominant memory chip makers. As reported by multiple sources, these new investment vehicles are expected to intensify focus on Samsung Electronics and SK Hynix, potentially accelerating the concentration of market capitalisation in these two companies. The funds provide institutional and retail investors with enhanced exposure to the AI memory chip rally, directly amplifying the impact of AI infrastructure spending on Korean memory chip manufacturers.
The KOSPI's performance demonstrates the concentrated nature of the AI memory chip rally, with Samsung and SK Hynix serving as key suppliers of high-bandwidth memory chips essential for AI infrastructure. As reported by Dalal Street Investment Journal, American technology companies including Microsoft, Google, Meta, and Amazon are committing hundreds of billions of dollars to AI infrastructure. Companies that have not participated in the rally, such as LG Energy Solution down 19% over six months and Samsung Biologics down 13% over one year, serve as reminders that the KOSPI story is not a rising tide lifting all ships but a targeted, sector-specific surge driven by AI memory chips. The same concentration that drove the rally is the primary risk embedded in the KOSPI at current levels.
