Key Highlights
- Shares of Samsung and SK Hynix soared 10–13% Wednesday following significant March declines
- South Korea’s KOSPI benchmark climbed more than 8%, bouncing back from last month’s 19%+ plunge
- Optimism surrounding a potential rapid resolution to Middle East tensions lifted investor confidence
- The semiconductor giants each shed 23–24% in March amid conflict worries and AI memory chip demand uncertainty
- A strong overnight session on Wall Street, fueled by President Trump’s Iran remarks, provided momentum to 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 substantial rally followed a punishing March for both semiconductor manufacturers.
South Korea’s KOSPI benchmark jumped 8.4% to close at 5,478.70, with the two major chipmakers driving much of the index’s recovery. The benchmark had plummeted more than 19% during March.
Both semiconductor firms experienced losses of approximately 23–24% over the previous month. A primary factor behind the decline was investor anxiety regarding the escalating Middle East situation, which threatened to increase production expenses and disrupt global supply networks.
Additional pressure emerged from questions about sustained demand for memory semiconductors utilized in artificial intelligence applications. Google‘s introduction of an algorithm claiming to reduce AI memory consumption added headwinds to the sector.
Market participants also began anticipating potential declines in memory chip pricing following OpenAI’s announcement of budget reductions. Among these cost-cutting measures was the shutdown of Sora, the company’s video generation platform.
Major AI Supply Agreement Under Scrutiny
Toward the end of 2025, OpenAI entered into an agreement with Samsung and SK Hynix to procure 900,000 DRAM wafers from the Korean manufacturers. This partnership had been a significant source of bullish sentiment for both companies’ shares.
Both firms had enjoyed rising memory chip valuations throughout late 2025, supported by market expectations that robust AI demand would exceed available supply. The recent downturn erased portions of those earlier advances.
Kiwoom Securities analyst Han Ji-young attributed Wednesday’s turnaround to value-seeking investors, noting that blue-chip stocks had declined sufficiently to entice buyers back into the market.
“The stock market is highly likely to enter a recovery phase rather than experience further decline,” Han stated in a client communication.
Middle East Peace Prospects Boost Market Confidence
Investor sentiment strengthened after President Trump indicated Tuesday that American forces would withdraw from Iran within two to three weeks. The president delivered these remarks during a White House press availability.
Iranian President Masoud Pezeshkian similarly expressed Tehran’s willingness to conclude hostilities, though he requested certain unspecified assurances.
These developments ignited an overnight rally across U.S. equity markets, with positive momentum extending into Asian trading sessions Wednesday.
Samsung concluded the trading day at 189,600 won, representing approximately $125.83. SK Hynix finished at 893,000 won.
The KOSPI index settled at 5,478.70, recording an 8.4% daily gain.
Despite Wednesday’s impressive performance, both Samsung and SK Hynix continue trading substantially below their pre-March selloff levels.
