Key Highlights
- The KOSPI index in South Korea bounced back 5.76% on Friday, ending at 8,088.34 after dropping to 7,300 during intraday trading
- SK Hynix shares jumped 10.88% while Samsung Electronics advanced 8.22%, recouping much of Thursday’s steep declines
- News of Anthropic, an AI startup, discussing custom hardware development with Samsung contributed to the rally
- Market experts believe Thursday’s downturn was an excessive response to Meta’s announcement about selling excess AI computing infrastructure
- SK Hynix revealed plans for a $29.4 billion equity offering and intentions to list on Nasdaq through ADRs to broaden its international investor reach
South Korea’s equity markets delivered a remarkable turnaround on Friday following one of their most severe single-session declines in recent history.
The KOSPI benchmark touched a session low of 7,300 during morning hours before rallying to finish 5.76% higher at 8,088.34. Trading had been suspended on Thursday after the index plummeted 7.89%, triggering an automatic circuit breaker.
Major Chip Manufacturers Drive Market Resurgence
SK Hynix shares skyrocketed 10.88% on Friday, bouncing back from Thursday’s devastating 14.6% plunge. Samsung Electronics climbed 8.22%, making up for some of its previous session’s 9.1% decline.
These semiconductor powerhouses represent the KOSPI’s heaviest weightings. Their performance directly influences the broader index’s direction.
Reports emerged Friday that Anthropic, an artificial intelligence firm, is engaged in discussions with Samsung regarding the creation of specialized hardware, providing additional upward momentum.
Across the Pacific, U.S. memory chip producer Micron experienced a 5.5% decline on Thursday, settling at $975.56. Despite the setback, the stock maintains gains exceeding 166% year-to-date as memory semiconductors remain central to AI investment themes.
The KOSPI has climbed approximately 92% in 2026, positioning it as the globe’s top-performing major equity index. This performance significantly outpaces the S&P 500’s 9.3% advance during the identical timeframe.
Market Professionals Label Thursday’s Decline Excessive
Thursday’s market turbulence originated from reports that Meta intended to monetize surplus AI computational resources. Market participants worried this signaled a potential peak in AI infrastructure investments.
Numerous South Korean financial institutions challenged this interpretation.
Samsung Securities’ Kim Joong-han stated that computational power continues to face “absolute shortage” conditions and suggested that the broader industry, Meta included, may still face capacity constraints.
Kim Young-gun from Mirae Asset Securities characterized the selloff as “a valid window for bargain buying in semiconductor stocks.”
Mirae Asset projects global technology giant capital expenditures will hit $806 billion this year, representing a 73% year-over-year increase. The firm anticipates spending will expand by more than 20% in the following year as well.
Aggregate order backlogs reported by leading technology corporations during Q1 reached $2.1 trillion, marking a 24% quarterly increase. Approximately $656 billion of this backlog is projected to convert into revenue within a two-year window.
SK Hynix made an additional strategic announcement this week. The company’s board sanctioned a $29.4 billion secondary share offering coupled with plans to establish a Nasdaq Global Select Market presence through American Depositary Receipts.
This strategic initiative could expand SK Hynix’s shareholder diversity and enhance access to American capital markets. Industry observers highlight that primary concerns include potential share dilution and market capacity to absorb such a substantial offering.
The upcoming critical milestone arrives on July 7, when Samsung is scheduled to publish preliminary second-quarter financial results. These figures may prove decisive in determining whether Friday’s recovery proves sustainable or temporary.
