Quick Summary
- Samsung and SK Hynix shares soared 10–13% Wednesday following significant March declines
- The KOSPI benchmark climbed more than 8%, bouncing back from last month’s 19%+ plunge
- Optimism about a rapid resolution to Middle East tensions lifted market confidence
- The semiconductor manufacturers shed 23–24% in March amid conflict concerns and AI memory chip demand worries
- Overnight gains on Wall Street, fueled by Trump’s Iran statements, provided momentum for Asian markets
Shares of Samsung Electronics surged 13% to reach 189,600 won Wednesday, as SK Hynix advanced approximately 11% to 893,000 won. The rally marked a dramatic turnaround for both companies after enduring significant selloffs during March.
South Korea’s KOSPI benchmark surged 8.4% to close at 5,478.70, with the chip sector’s recovery providing the primary catalyst. The index had tumbled more than 19% during the previous month.
The two technology titans each dropped approximately 23–24% throughout March. Market participants cited anxiety surrounding the Middle East military situation, which sparked fears about elevated manufacturing expenses and potential disruptions to global supply networks.
Worries also emerged regarding future demand for memory semiconductors utilized in artificial intelligence applications. Google introduced an innovative algorithm claiming to reduce AI memory consumption substantially, putting pressure on memory chip valuations.
Speculation mounted that memory semiconductor pricing could soften following OpenAI’s budget reduction initiatives. The artificial intelligence firm discontinued its video generation platform, Sora, as part of broader cost-cutting measures.
Strategic OpenAI Partnership Under Scrutiny
Toward the end of 2025, OpenAI executed an agreement with Samsung and SK Hynix to procure 900,000 DRAM wafers from both manufacturers. This partnership had previously generated substantial investor enthusiasm for the stocks.
Both semiconductor producers had enjoyed rising memory chip valuations throughout late 2025, driven by market expectations that robust AI demand would exceed available supply. The recent downturn erased a portion of those earlier gains.
Kiwoom Securities analyst Han Ji-young attributed Wednesday’s resurgence to value-seeking investors, noting that blue-chip technology stocks had declined sufficiently to attract fresh capital.
“The equity market appears more likely to enter a recovery trajectory rather than continue its downward momentum,” Han stated in a client briefing.
Diplomatic Progress Boosts Market Confidence
Investor sentiment strengthened following President Trump’s Tuesday announcement that American forces would withdraw from Iran within two to three weeks. He delivered these remarks during a White House press briefing.
Iranian President Masoud Pezeshkian indicated Tehran’s willingness to conclude hostilities, while requesting certain unspecified assurances as conditions.
These diplomatic developments triggered substantial gains across U.S. equity markets Tuesday evening, with the positive momentum extending into Wednesday’s Asian trading sessions.
Samsung shares concluded Wednesday’s trading at 189,600 won, approximately $125.83 in dollar terms. SK Hynix finished at 893,000 won.
The KOSPI index settled at 5,478.70, registering an 8.4% daily advance.
Despite Wednesday’s strong performance, both Samsung and SK Hynix continue trading well below their pre-March levels.
