Asian Chip Stocks Surge on AI Memory Demand, Kospi Jumps 4.6%
Asian stock markets opened the week with a significant rally in chip stocks, driven by expectations of continued growth in demand for memory chips essential for artificial intelligence systems. South Korea's Kospi index, heavily weighted towards technology, closed up 4.6%, with SK Hynix soaring 8.3% and Samsung adding 5.7%. This surge is attributed to the critical role of Korean manufacturers in the AI supply chain, particularly in high-bandwidth memory (HBM).
SK Hynix, the world's second-largest memory chip maker, is a key player, holding about half of the HBM market and securing two-thirds of Nvidia's HBM4 orders. The company reported a substantial increase in revenue for the second quarter of 2026, reaching 79.3 trillion won, a 257% year-over-year jump, with an operating profit margin of approximately 76%. This high profitability is due to demand outpacing production capacity.
The positive momentum extended to other Asian markets, with Tokyo's Nikkei rising 2.1% and China's CSI 300 adding 0.6%. Hong Kong's Hang Seng was an exception, falling 0.9%. The rally in the Kospi is largely due to SK Hynix and Samsung, which together constitute about 55% of the index's market capitalization.
The catalyst for the rally appears to be the strong US August jobs report, which showed 162,000 new jobs, exceeding forecasts. This suggests a robust US economy capable of sustaining demand for computing infrastructure and AI-related hardware. Meanwhile, European markets showed mixed performance, with the STOXX 600 adding only 0.1%, as investors focused on rising bond yields and political developments, such as the far-right Alternative for Germany party's victory in regional elections.
US stock and bond markets were closed for Labor Day, but futures trading indicated a slight dip for the S&P 500. The Asian rally's impact on the Israeli tech sector is also noted, as local chip and computing infrastructure companies often follow similar trends with a slight delay.
