Semiconductor stocks experienced a dramatic rally across Asian markets. On May 6, markets surged across the board. South Korea's benchmark index soared over 6%, breaking through the 7,000-point mark to reach a record high. Although Japanese markets were closed for a holiday, Japanese stock futures also surged by over 1,600 points.
Samsung Electronics saw its market capitalization reach $1 trillion. Over the past year, driven by soaring demand for chips used in artificial intelligence, shares of the world's largest memory chipmaker have more than tripled, making it the second company in Asia, after Taiwan Semiconductor Manufacturing, to achieve this milestone.
Samsung, along with memory chip peers like SK Hynix and TSMC, finds itself at the center of an industry transformation. This shift has positioned Asia as a key pillar of the global AI ecosystem, leveraging strengths in chip manufacturing on one side and expanding data infrastructure on the other. This transformation has fueled a powerful rally in Asian tech stocks. Both SK Hynix and TSMC also hit record highs this month, as investors bet on sustained growth in demand for advanced chips and computing power.
"The $1 trillion threshold is more than just symbolic," said Dave Mazza, CEO of Roundhill Investments in New York. "More broadly, it reflects the market's conclusion that the role of memory chips in the AI infrastructure system is structural, not cyclical."
Foreign capital was likely a primary driver of the latest rally. Local Korean media reported that Interactive Brokers and Samsung Securities have partnered to enable U.S. investors to buy Korean stocks directly. Global investors recorded net purchases of nearly 2.9 trillion won (approximately $2 billion) in Kospi stocks on Monday, nearing a record level and resuming net buying after the holiday. The South Korean won rose up to 1.3% against the U.S. dollar, outperforming other emerging Asian currencies.
According to sell-side analyst forecasts, Samsung's stock is expected to rise another 25% over the next 12 months. The stock currently trades at a forward price-to-earnings ratio of just 5.9 times, down from 14.4 times last October.
The dazzling rally in shares of Samsung and SK Hynix has also made South Korea one of the world's hottest markets. Together, these two companies account for over 43% of the weighting in the Kospi benchmark index.
"Overall corporate earnings continue to strengthen, and there's only one main source for that—the technology sector," said Mark Davids, Head of Asia Pacific Equities for Emerging Markets and Asia Pacific at J.P. Morgan Asset Management. He stated that Samsung's profits reflect a "very unusual period, a stage where these companies are able to achieve supernormal profits."
Turning to China's A-share market, stocks opened higher and climbed throughout the trading day. At the close, the Shanghai Composite Index was up over 1%, the Shenzhen Component Index and the ChiNext Index both rose over 2%, and the STAR 50 Index surged more than 5%.
A total of 3,889 stocks advanced, with 125 hitting their daily upside limit, while 1,482 stocks declined.
Semiconductor and chip stocks continued their explosive run, with shares like Demingli, Jiangbolong, and Langke Technology hitting their limit-up prices and reaching new highs.
Computing power leasing concept stocks also rose sharply, with Litong Electronics securing its fourth consecutive limit-up, and shares like Chuanneng Co., Ltd. and Meili Cloud hitting the upside limit.
Computing hardware stocks related to CPO and PCB sectors showed repeated strength, with companies like Taijin New Energy, Guanghe Technology, and Bomin Electronics rising by their daily limit.
On the downside, oil and gas stocks retreated, with Zhongman Petroleum falling over 7%.
Some analysts noted that in post-holiday trading, "tech stocks were firing on all cylinders from the opening bell, with this wave of gains primarily driven by spillover from strong global peer performance." This trend reflects a renewed investor interest in semiconductor stocks, which have been leading gains in regional Asian markets. With major clients issuing strong capital expenditure outlooks, technology hardware manufacturers are likely to continue their upward trajectory.
Comments