Key Highlights

● South Korea's KOSPI soared, powered by SK hynix's results.

● SK hynix reported a more than sevenfold jump in profit.

● The rally spilled over into US chip trading.

● SK hynix said it sees the memory shortage lasting into 2030.

South Korea's stock market had a day to remember, as the KOSPI soared, powered by SK hynix, one of the world's largest memory chipmakers, after it delivered results that stunned investors and reinforced the strength of the AI hardware boom. The rally spilled over into US trading, where SK hynix's US-listed shares jumped and memory stocks climbed alongside them.

SK hynix reported a more than sevenfold jump in profit, with quarterly revenue topping 100 trillion won for the first time, roughly $78.7 billion, and operating profit of about $62.7 billion, an exceptionally wide operating margin.

Why One Company Moved a Whole Market

The company also said it expects the memory shortage to last into 2030 and unveiled a large shareholder return plan, signals that demand for high-performance memory, essential for training and running AI models, remains far ahead of supply.

SK hynix is one of the heaviest weights in its home index alongside Samsung Electronics, and when a company of that size posts results this strong, the effect on the broader index can be dramatic.

Ripple Effects in the US

The excitement carried over to Wall Street, with Micron Technology climbing on the memory rally and Sandisk rising strongly, while chip equipment makers Lam Research and Applied Materials both climbed. Nvidia was a notable exception, slipping during the session.

After the US close, sentiment cooled, however, as Alphabet slid sharply in extended trading after missing estimates, and Micron gave back some ground after the bell in sympathy.