Samsung and SK Hynix rise up to 7% due to AI chip rally

WHAT HAPPENED

Shares of Samsung and SK Hynix rose up to 6%-8% in South Korea, after Micron, Intel, and AMD advanced strongly in the U.S. The KOSPI gained nearly 4.5% and the Nasdaq, 2.59%.

WHY IT MATTERS

Memory chips, which store information, are essential for training artificial intelligence. Since Samsung, SK Hynix, and Micron dominate this market, the expectation of high demand boosted their shares and affected Asian markets. Technology and data centers feel it first.

AND FOR YOUR PORTFOLIO

An index fund or ETF focused on technology, Asia, or Nasdaq may rise when these companies have a significant weight in their indices. But they can also fall sharply: shares of memory chips have been very volatile, and a rise today does not guarantee it will continue tomorrow.