South Korea's benchmark Kospi index rebounded sharply on Tuesday, climbing 3.4% in its strongest daily performance since February, as renewed optimism in artificial intelligence lifted heavyweight chipmakers. Samsung Electronics and SK Hynix, which together account for nearly half of the index's market capitalization, both advanced more than 4% during the session.
The rally follows a brutal October for Korean equities, with the Kospi still on track for a monthly decline of around 17%. The rebound was triggered by Anthropic's public IPO filing, released Monday ahead of the U.S. market open, which provided investors with a detailed look at the financials of the company behind the Claude AI models. The filing helped ease concerns about AI financing and returns that had sparked a recent selloff.
U.S. technology stocks responded positively, with the Nasdaq Composite rising about 1% on Monday and the Philadelphia Semiconductor Index gaining nearly 3%. That momentum carried into Asian trading, prompting investors to reassess the growth prospects for companies supplying the hardware essential to AI expansion.
HBM4 plans and dividend reports in focus
Korean media reports indicated that Samsung and SK Hynix are targeting the second quarter of 2027 for mass production and shipment of eight-layer, sixth-generation HBM4 memory products to Nvidia. The timeline reflects evolving requirements for next-generation AI accelerators, with chipmakers adjusting product configurations to manage manufacturing constraints and supply needs.
SK Hynix also drew attention following a report that it is considering a special dividend of approximately 16 trillion won, potentially funded by gains from its investment in Japanese memory-chip maker Kioxia. However, the company stated it is reviewing various shareholder-return measures and no decision has been made. An update is expected alongside its third-quarter earnings on Wednesday.
The chipmaker recently scrapped plans for a potential U.S. listing of its Solidigm unit, citing market conditions and share-price trends. That decision removed one avenue for raising capital to fund expansion, leaving alternative financing options under consideration.
Earnings test next
SK Hynix is scheduled to report third-quarter results on October 28, followed by Samsung Electronics on October 29. Investors will scrutinize HBM sales, pricing, order visibility, and guidance for 2027 to determine whether AI-driven demand can sustain the industry's growth trajectory.
The results will also be examined for signs that customers are delaying purchases or reconsidering investment plans amid persistent financing costs and concerns over AI profitability. With Korean equities still recovering from a steep October decline, the earnings from these two chipmakers could prove decisive in determining whether the rally extends beyond a short-term relief bounce.
This article is for informational purposes only and does not constitute financial advice.
