Global semiconductor companies added over $200 billion in market value in a single session, as investors rushed to capitalise on artificial intelligence (AI) momentum and strategic deals involving tech giants. The surge follows OpenAI’s landmark $500 billion valuation and its expanding partnerships with chip makers in South Korea.
Korean chip stocks were among the top gainers, with SK Hynix soaring 10% and Samsung Electronics rising 3.5%, propelling the Kospi Index to a record high. The Philadelphia Semiconductor Index (SOX) and Bloomberg’s Asia chip index also jumped sharply, reflecting growing investor appetite.
Fuelled by AI and OpenAI’s Rise
The rally was triggered by news of OpenAI’s collaborations with South Korean semiconductor firms, alongside reports that Intel is in talks with AMD to expand its client base. This comes as OpenAI’s valuation leap, driven by a secondary share sale, continues to ripple through global tech markets.
Investors are increasingly betting on companies that supply the infrastructure for AI — from chipmakers like Nvidia, SK Hynix, and TSMC, to equipment suppliers such as ASML and BE Semiconductor.
‘Fear of Missing Out’ Drives Momentum
Analysts attribute the surge to a classic case of FOMO (fear of missing out). Despite concerns about frothy valuations, investor enthusiasm remains high.
“Tech momentum shows no sign of fading — as if gravity doesn’t exist,” said Hebe Chen, an analyst at Vantage Markets. “Bubble talk lingers, but it’s FOMO that’s clearly running the show.”
Valuations Approach Historic Highs
Valuation metrics underscore the intensity of the rally. The SOX Index is now trading at 27x forward earnings, nearing its all-time peak from 2024, while Asia’s chip index stands at 19x forward earnings. ASML, which has seen a nearly 50% rebound since August, led Europe’s gains.
Altman Eyes Taipei After Korea Deal
Following the Korean partnerships, OpenAI CEO Sam Altman is reportedly heading to Taipei to engage with TSMC and Hon Hai (Foxconn). Shares of both firms jumped after the news, signalling confidence in OpenAI’s AI hardware roadmap.
Chipmakers at the Heart of AI’s Next Wave
From accelerating large language models to enabling edge AI, semiconductors remain central to the global AI boom. With institutional investors pouring into the space, the semiconductor rally may just be getting started — even as some warn of overheating.
