Asia Markets Jump on Better AI Sentiment: Samsung and SK Hynix Lead the Charge

 

# Asia Markets Jump on Better AI Sentiment: Samsung and SK Hynix Lead the Charge

**Published: February 25, 2026**

You know that feeling when you've been holding your breath for a few weeks, and finally—finally—you can exhale?

That's what happened in Asian markets today.

After weeks of anxiety about whether all that AI spending would ever actually pay off, investors decided maybe it will. And they put their money where their mouth is.

South Korea's KOSPI index broke above 6,000 for the first time ever. Japan's Nikkei hit a record high. Australian stocks are at all-time highs. The MSCI Asia Pacific Index extended its gains for the third straight day .

Let me walk you through what's happening, why it's happening, and what it means for anyone watching these markets from the U.S.

---

## The Short Version

**What happened:** Asian stocks jumped across the board, led by Korean chipmakers Samsung and SK Hynix.

**The numbers:** South Korea's KOSPI was up nearly 1.7%, trading above 6,000 for the first time . Japan's Nikkei rose 1.1% to a record high of 57,956 . Australia's S&P/ASX200 gained as much as 1.1% . Hong Kong and China also rose, but more modestly .

**Why it happened:** Better sentiment on AI. A company called Anthropic eased fears by saying it plans to build partnerships, not just disrupt existing businesses . That calmed nerves that had been rattled for weeks.

**The big picture:** Korean chip stocks are up huge this year. Samsung has doubled since October. The KOSPI is up 44% in 2026 alone . We're watching the biggest AI-driven rally in history.

---

## The Numbers: Let's Look at the Scoreboard

Here's what happened across Asia today.

**Table 1: Asian Markets – February 25, 2026**

| **Index** | **Performance** | **Notable** |

| :--- | :--- | :--- |

| South Korea KOSPI | +1.7% | Above 6,000 for first time; up 44% YTD |

| Japan Nikkei 225 | +1.1% | Record high of 57,956 |

| Australia S&P/ASX200 | +1.1% | Record high |

| Hong Kong Hang Seng | +0.36% | Modest gain |

| China CSI 300 | +0.3% | Modest gain |

| MSCI Asia Pacific | Higher | 3rd straight day of gains |

**What's driving this?** Two words: Samsung and SK Hynix. These two companies are absolutely on fire right now.

---

## The Korean Chip Story: Where the Real Action Is

Let's zoom in on Korea, because that's where the really dramatic stuff is happening.

**Samsung Electronics** jumped 3.6% on Tuesday and is now sitting at about **$927 billion in market cap** . That's just 8% away from becoming the first Korean company to hit $1 trillion .

**SK Hynix** is now worth about **$480 billion** , making it the 21st most valuable company in the world .

To put that in perspective: these two companies alone are worth more than the entire GDP of most countries.

**What's driving them?** A global memory chip shortage caused by the AI buildout. The big U.S. tech companies—Microsoft, Meta, Google, Amazon—are spending a combined **$650 billion this year** on AI infrastructure . That includes buying massive amounts of memory chips. And the only companies that make them at scale are Samsung, SK Hynix, and Micron.

SK Hynix has already sold out its entire slate of memory chips for 2026 . Micron has done the same with their high-bandwidth memory. When you're sold out for the entire year before February is even over, you know you're in a good spot.

---

## The Analyst Love Fest

Wall Street and global analysts are tripping over themselves to raise targets on these stocks.

**Table 2: Samsung Electronics Price Targets**

| **Firm** | **Target Price (KRW)** | **Upside from Current** |

| :--- | :--- | :--- |

| Morgan Stanley | 248,000 | ~24% |

| Citi | 280,000 | ~40% |

| Macquarie | 340,000 | ~70% |

| SK Securities | 300,000 | ~50% |

| Hanwha Investment | 260,000 | ~30% |

| NH Investment | 250,000 | ~25% |

*Source: Various (converted from reports) *

Macquarie's analysts are particularly bullish. They expect DRAM and NAND prices to stay strong for at least two more years, and they think Samsung's profits could grow **10 times between 2025 and 2028** .

**Why Samsung specifically?** Macquarie points out that only Samsung has the capacity to seamlessly bring new wafer fabs online over the next three years . Their P4 fab is coming online now, and P5 is planned for 2028. In a supply-constrained market, that's a huge advantage.

Citi is even more aggressive on pricing. They expect DRAM prices to rise **171% in 2026** and NAND prices to rise **127%** . That's not a typo. More than double in one year.

SK Securities analyst Han Donghee said something interesting: "This is the first time a memory boom has coincided with a liquidity expansion. The re-rating has not even started yet" .

In other words: we might only be in the early innings of this rally.

---

## The Bigger AI Picture: What Changed This Week

Okay, so why did markets suddenly jump today after weeks of anxiety?

It comes down to a company called **Anthropic**.

You might know them as the makers of Claude, one of the leading AI chatbots. Last week, there was panic that Claude's technology would disrupt all kinds of businesses—software, insurance, wealth management, cybersecurity. The "AI scare trade" wiped billions off stock values .

But on Tuesday, Anthropic announced **10 new ways for business customers to use its AI plugins** . More importantly, they signaled they plan to build partnerships with existing companies, not just disrupt them .

That simple change in messaging was enough to revive enthusiasm that AI will actually boost profits across a range of sectors, not destroy them .

**Laura Cooper**, head of macro credit at Nuveen, put it well: "AI is not a bubble technology, but that doesn't mean every AI bet will pay off" . Some companies will win. Some will lose. But the technology itself is real.

---

## The Nvidia Factor

Everyone is also waiting for **Nvidia's earnings**, which come out after the U.S. market close today .

Nvidia is the poster child for AI. Their stock has gone up something like 800% in two years. They've become one of the most valuable companies in the world by selling the chips that power AI.

But here's the thing: they have to keep delivering. The market expects them to crush expectations again. And if they don't, there could be fallout across the entire AI trade .

The stakes are incredibly high. We're talking about a company that now accounts for a significant chunk of the entire S&P 500's weight. If Nvidia stumbles, it won't just be their stock that falls.

---

## The Cautionary Voices

It's not all roses, though. Even as markets rally, there are warnings.

**Chey Tae-won**, the chairman of SK Group (SK Hynix's parent), gave a fascinating interview last week. He acknowledged that SK Hynix's 2026 operating profit could hit **$100 billion** based on current analyst projections .

But then he added: "That sounds like really good news. But it could just as easily turn into a $100 billion loss" .

His point is that semiconductor cycles turn fast. The same factors that create huge profits today—shortages, surging demand—can reverse just as quickly if new capacity comes online or demand softens.

He also highlighted a practical problem: power. SK is now exploring building power plants alongside AI data centers because the energy demands are so massive. He called failure to meet energy demand "disastrous" .

In Korea, there are also warnings that the market might be overheating. Short interest has increased by about **700 billion won** ($500 million) in recent weeks . That means more investors are betting that stocks will fall. Not a huge amount in context, but worth noting.

DB Financial Investment has set a KOSPI target range of 4,300 to 5,700—far below current levels . That's effectively a sell recommendation in a market that's at 6,000.

---

## What This Means for American Investors

Okay, so Asian markets are on fire. What does that mean for you?

### If You Own U.S. Tech Stocks

This rally is good news. Asian chipmakers are a leading indicator for the whole AI supply chain. If Samsung and SK Hynix are booming, it means demand is real.

But also watch Nvidia tonight. Their earnings will set the tone for the whole sector.

### If You're Thinking About International Exposure

This is a reminder that the AI story isn't just about U.S. companies. The "picks and shovels" of the AI gold rush—the memory chips, the manufacturing capacity—are largely in Asia. If you want exposure to that, you might need to look beyond the Nasdaq.

### If You're Worried About a Bubble

The cautious voices are worth listening to. Chey's warning about cycles turning fast is not just talk—he's been through multiple booms and busts. And the short interest increase suggests some sophisticated investors think this rally has gone too far, too fast.

But here's the thing: bubbles can last longer than you think. And the fundamentals here—actual profits, actual demand, actual sold-out production—are real.

---

## Frequently Asked Questions

**Q: Why are Korean chip stocks rallying so much?**

A: Two reasons. First, the AI buildout requires massive amounts of memory chips, and Samsung and SK Hynix are two of only three companies in the world that make them. Second, they're both sold out for the entire year, which means they have pricing power .

**Q: How high could Samsung's stock go?**

A: Analyst targets range from 250,000 KRW to 340,000 KRW . The current price is around 200,000 KRW, so potential upside is anywhere from 25% to 70% depending on who you believe.

**Q: What's the deal with Anthropic and why did it move markets?**

A: Anthropic is the maker of Claude, an AI chatbot. There were fears that its technology would disrupt existing businesses. But this week, they announced partnership plans, easing those concerns .

**Q: Is this rally sustainable?**

A: That's the million-dollar question. The fundamentals are strong—real demand, real profits. But valuations are high and cycles can turn fast .

**Q: What about Nvidia's earnings?**

A: They report tonight. The whole market is watching. If they deliver another blowout quarter, the rally could continue. If they disappoint, expect fallout .

**Q: Should I buy Korean stocks now?**

A: I can't give investment advice. But here's what the analysts are saying: valuations are higher than they were, but some think the rally is just getting started . Others warn of overheating. Do your own research.

**Q: What's the risk if I invest now?**

A: The biggest risk is a classic semiconductor cycle downturn. If demand softens or new supply comes online, prices could fall fast . Also, geopolitical risk is real—Korea is in a tough neighborhood.

**Q: How do I actually buy Korean stocks?**

A: If you want individual stocks, you'd need a broker with international access. For most people, an ETF that tracks Korean or Asian markets is easier. There are several that focus on Korea or on global chipmakers.

---

## The Bottom Line

Here's what I keep coming back to.

We are watching something historic. The AI buildout is the biggest infrastructure project in decades, maybe ever. $650 billion in spending this year alone. Companies sold out for the entire year before February ends. Stocks up 44% in two months.

It's easy to get caught up in the excitement. And maybe that excitement is justified. The profits are real. The demand is real. The shortages are real.

But it's also worth remembering what SK Hynix's chairman said. A $100 billion profit can turn into a $100 billion loss faster than you think.

The right approach is probably somewhere in the middle. Be excited. Be invested. But also be aware that what goes up fast can come down fast.

For now, though, Asia is partying. And Korean chipmakers are hosting.

---

*Got thoughts on this rally? Invested in Korean stocks? Worried about a bubble? Drop a comment and let me know.*