Key Highlights
- Samsung and SK Hynix shares surged 10–13% Wednesday following significant March declines
- The KOSPI benchmark rallied more than 8%, bouncing back from last month’s 19%+ plunge
- Optimism regarding a potential swift resolution to Middle East tensions lifted market sentiment
- The two semiconductor manufacturers had tumbled 23–24% during March amid conflict worries and AI memory chip demand uncertainty
- An overnight U.S. stock market advance, spurred by President Trump’s Iran statements, provided momentum for Asian markets
Shares of Samsung Electronics surged 13% to reach 189,600 won Wednesday, while SK Hynix advanced approximately 11% to 893,000 won. The dramatic upswing followed a punishing March that saw both stocks plummet.
South Korea’s KOSPI benchmark jumped 8.4% to close at 5,478.70, with the two semiconductor giants contributing substantially to the index’s recovery. The benchmark had plunged more than 19% during the previous month.
March proved devastating for both companies, with share prices dropping approximately 23–24%. Investor anxiety centered on escalating Middle East tensions, which threatened to increase manufacturing expenses and create supply chain bottlenecks.
Market participants also questioned the sustainability of memory chip demand for artificial intelligence applications. Google‘s introduction of an algorithm purportedly capable of reducing AI memory needs created additional pressure on the semiconductor sector.
Speculation intensified that memory chip pricing could weaken following OpenAI’s announcement of budget reductions. The artificial intelligence company discontinued its Sora video generation platform as part of its cost-cutting initiative.
OpenAI Partnership Remains Strategic Priority
Toward the end of 2025, OpenAI entered into an agreement with Samsung and SK Hynix to acquire 900,000 DRAM wafers from the Korean manufacturers. This partnership had generated substantial investor enthusiasm for both companies.
The semiconductor producers enjoyed a sustained period of rising memory chip valuations through late 2025, driven by expectations that robust AI demand would exceed available supply. March’s downturn erased a portion of those accumulated gains.
Kiwoom Securities analyst Han Ji-young attributed Wednesday’s rally to value-oriented investors stepping in after blue-chip technology stocks declined to attractive entry points.
“The stock market appears more likely to enter a recovery trajectory than experience additional downside,” Han stated in research commentary shared with clients.
Diplomatic Developments Boost Market Confidence
Investor mood brightened following President Trump’s Tuesday announcement that U.S. forces would withdraw from Iran within a two-to-three-week timeframe. The president addressed reporters at the White House with this update.
Iranian President Masoud Pezeshkian expressed Tehran’s willingness to conclude the ongoing conflict, although he indicated certain guarantees would need to be secured first.
These diplomatic signals triggered a substantial rally across U.S. equity markets Tuesday evening, with the positive momentum extending into Wednesday’s Asian trading sessions.
Samsung concluded Wednesday’s trading at 189,600 won, representing approximately $125.83 in U.S. currency. SK Hynix finished at 893,000 won.
The KOSPI index settled at 5,478.70, marking an 8.4% gain for the session.
Despite Wednesday’s impressive advances, both Samsung and SK Hynix continue trading well below their pre-March selloff valuations.
