Asian chipmakers lift AI supply-chain stocks as earnings surge

Asian chipmakers including Taiwan Semiconductor Manufacturing Co (TSMC), Samsung Electronics and SK Hynix have moved to the forefront of the global artificial intelligence (AI) rally, as demand for AI-related hardware boosts earnings and investor interest across the region.

South Korea’s benchmark KOSPI has doubled in a little more than six months, according to the source report, with Seoul emerging as a focal point for trading linked to AI supply-chain names.

Samsung reported an eightfold rise in first-quarter profit, with its chip business contributing 94% of a record 57.2 trillion won total, the report said. The company’s market capitalisation has crossed $1 trillion.

SK Hynix, which was valued at less than $100 billion 16 months ago, is now closing in on $800 billion, the report added. Both firms supply key components used by major U.S. technology companies, including Nvidia, which is widely viewed as central to the AI hardware ecosystem.

Investor participation has increased alongside the rally. Leveraged buying of KOSPI shares by South Korean retail investors hit a record 25 trillion won in late April, the report said.

Analysts cited in the report pointed to what they described as a “seller’s market” for AI suppliers, with multi-year agreements suggesting demand may remain resilient.

The AI-related manufacturing upswing is also feeding into regional growth. Taiwan’s first-quarter GDP rose 13.69% and South Korea’s grew 1.7%, the report said, attributing much of that momentum to AI-linked production.