Summary
Samsung Electronics and SK Hynix saw their stock prices reach record highs after Nvidia reported robust quarterly results and signaled continued strength in demand for AI-related semiconductors. The two memory-chip giants were among the largest contributors to a KOSPI rally that pushed the South Korean index to a fresh high. Corporate developments at both firms - including Samsung's smartphone unveiling and SK Hynix's partnership and investment plans - reinforced the market response.
Key points
- Samsung Electronics (KS:005930) rose more than 5% to 217,500 won, a record high.
- SK Hynix (KS:000660) advanced over 2% to 1,053,500 won, also a record high.
- Both companies were large contributors to the KOSPI's more than 2% gain, which took the index to a record level; gains were tied to Nvidia's upbeat earnings and guidance.
Risks and uncertainties
- Market reactions are linked to Nvidia's guidance and demand for AI chips - if that demand changes, sentiment for memory suppliers could reverse.
- Supply dynamics in the memory-chip market remain a key variable; tightness that lifted prices through late-2025 could shift, affecting margins for semiconductor producers and related sectors.
Market move and corporate signals
Shares of Samsung Electronics Co Ltd (KS:005930) surged more than 5% on Thursday, reaching 217,500 won, while SK Hynix Inc (KS:000660) climbed over 2% to 1,053,500 won - both milestones marked record intraday levels. The two memory-chip makers were significant drivers of a broader advance in South Korea's KOSPI, which rose in excess of 2% and also hit a record high as investors reacted to Nvidia's results.
Nvidia (NASDAQ:NVDA) reported quarterly earnings that exceeded expectations and provided guidance for its current quarter that suggested continued strong demand for its advanced chips from the artificial intelligence sector. Those signals were interpreted positively for Samsung and SK Hynix, which are among the world’s largest memory-chip suppliers to Nvidia.
Market observers noted Samsung was seen as positioned to secure an exclusive role supplying advanced high bandwidth memory chips for Nvidia's top-end, next-generation Vera Rubin processors. In addition to memory, Samsung disclosed its next-generation flagship smartphone line - the S26 series - on Wednesday, a product group that constitutes a major revenue stream for the company beyond memory sales.
SK Hynix on Wednesday announced a partnership with SanDisk Corporation (NASDAQ:SNDK) to begin development work on high bandwidth flash memory, which the company described as a next-generation storage architecture important for AI development. SK Hynix also said it plans to invest 21.6 trillion won ($15.07 billion) to construct a new production facility in Yongin.
Analysts and market participants pointed to an AI-fueled shortage in the memory-chip markets that drove up prices through late-2025, producing substantial benefits for Samsung and SK Hynix. The report indicated this pricing and demand trend is broadly expected to persist in the coming quarters.
Note: This article reports market moves and corporate announcements based on the companies' releases and published earnings and guidance.