^{Photo: South China Morning Post}

Asia-Pacific markets traded mostly lower on Friday, mirroring overnight declines on Wall Street as investors weighed mixed economic signals. Yet, amid the subdued regional sentiment, South Korean chip giants SK Hynix and Samsung Electronics emerged as standout winners — both hitting record highs driven by the surging wave of artificial intelligence investment worldwide.

South Korean Chip Stocks Break Records

After returning from a weeklong holiday, SK Hynix shares jumped 10%, while Samsung Electronics climbed nearly 6%, according to FactSet data. Both companies reached their highest trading levels in history, fueled by growing investor confidence in AI-linked semiconductor demand.

The sharp rally came after reports that OpenAI, led by Sam Altman, is finalizing a strategic deal with Advanced Micro Devices (AMD) that could include a 10% equity stake. The partnership aims to accelerate AI chip production and reduce dependency on Nvidia’s GPU dominance. AMD’s own stock has surged over 40% this week following the news, marking one of its strongest weekly performances in years.

AI Frenzy Pushes Global Chipmakers Higher

The optimism wasn’t limited to South Korea. Nvidia shares climbed another 2.6% this week, as CEO Jensen Huang confirmed in a CNBC interview that demand for the company’s AI chips has continued to strengthen. Huang also disclosed Nvidia’s participation in the funding round for Elon Musk’s AI venture, xAI, describing it as a “transformational opportunity” for the AI ecosystem.

The growing convergence between major AI developers — including OpenAI, AMD, Nvidia, and xAI — has sparked renewed investor enthusiasm for semiconductor companies across Asia. Analysts expect that South Korean firms like SK Hynix, which supplies high-bandwidth memory (HBM) chips to Nvidia, will continue to benefit from the AI-driven supply chain expansion throughout 2025.

Broader Market Mixed Across Asia-Pacific

Despite the chip sector rally, most Asian markets trended downward.

• Japan’s Nikkei 225 slipped 0.33%, and the Topix index lost 0.92%, extending its two-day decline.
• South Korea’s Kospi, however, managed a 0.66% gain, lifted by semiconductor strength, while the Kosdaq fell 0.37%.
• Australia’s S&P/ASX 200 edged 0.26% lower, weighed down by energy and financial stocks.
• Hong Kong’s Hang Seng Index dropped 1%, and China’s CSI 300 fell 1.01%, pressured by ongoing concerns over the Chinese property sector and slowing manufacturing activity.

U.S. Markets Pause After Record Run

Overnight in the U.S., major indices retreated slightly after a week of fresh all-time highs.

• The S&P 500 slipped 0.28% to close at 6,735.11.
• The Nasdaq Composite dipped 0.08%, ending at 23,024.63.
• The Dow Jones Industrial Average declined 243.36 points (0.52%), closing at 46,358.42.

The pullback reflected investor caution amid ongoing debates over the U.S. government shutdown and uncertainty surrounding future Federal Reserve interest rate decisions.

Outlook: AI as the Growth Engine

Analysts believe the semiconductor rally in Seoul is a preview of what’s to come as artificial intelligence reshapes the global tech landscape. With AI chip demand projected to grow by more than 35% annually through 2026, according to industry forecasts, companies like Samsung Electronics and SK Hynix are poised to remain key players in the evolving AI economy.

While broader markets may face short-term volatility, the record highs for South Korea’s leading chipmakers underscore one clear message: the AI revolution continues to redefine the future of investing in technology.