Samsung Electronics Surges Over 6% as Bargain Hunters Return to Chip Stocks, Powering KOSPI Rebound

SEOUL — Shares of Samsung Electronics surged 6.15%, or 15,000 won, to 259,000 won Tuesday afternoon, leading a broad rebound in South Korean semiconductor stocks as bargain hunters returned to the sector following last week's sharp selloff tied to global concerns over AI-related valuations.

The rally in Samsung shares came as South Korea's benchmark Kospi index snapped a two-day losing streak, climbing 3.56%, or 231.68 points, to close at 6,747.95, according to Korea Exchange data. The index had lost ground in early trading before sharply reversing course around midday, a swing strong enough to trigger a five-minute halt in program trading after the rally accelerated past technical thresholds monitored by the exchange.

Samsung and SK Hynix lead the recovery

Samsung Electronics and SK Hynix, the two memory chip giants that together account for more than half of the Kospi's total index value, led Tuesday's rebound. SK Hynix rose 4.25% to 4.1%, depending on the measurement point during the session, while Samsung's gains were the larger of the two, according to trading data reported by multiple outlets tracking the session. Trading volume for the overall session came in at a moderate 387.8 million shares, worth approximately 24.5 trillion won, or roughly $16.6 billion.

The rebound followed a difficult stretch for both companies. The Kospi had fallen 4.46% to close at 6,516 on Monday, its lowest level since late April, as weakness in global semiconductor stocks weighed heavily on investor sentiment. Over the trailing month, the index had declined nearly 26% amid a broader correction in AI-related valuations, even though the Kospi remains up more than 112% compared with the same point a year earlier.

Global markets stage a broader tech recovery

Tuesday's rally in Seoul was part of a wider recovery across Asian and global markets, according to the Associated Press. World shares mostly gained and U.S. futures advanced, with markets trading higher in both South Korea and Japan, led by technology shares recovering from recent declines tied to heavy selling of AI-linked stocks. Tokyo's Nikkei 225 added 3.3% to close at 66,232.19 after returning from a Monday holiday, with computer memory maker Kioxia Holdings surging 17.2% and chip testing equipment maker Advantest jumping 7.7%.

Oil prices continued climbing amid the ongoing conflict between the United States and Iran, though reports of renewed mediation efforts between the two countries helped support broader risk appetite across markets, according to Trading Economics.

An extraordinarily volatile year for Korean markets

Samsung and SK Hynix's outsized influence on the Kospi has made South Korea's benchmark index one of the most volatile major stock gauges in the world this year, according to data reported by financial outlet Briefs. Through July 20, the Kospi had recorded volatility exceeding 60% in 2026, roughly double what Japan's Nikkei 225 experienced over the same period and higher than the price swings seen in Bitcoin. The Korea Exchange has been forced to activate circuit breakers seven separate times between January and mid-July to halt trading amid extreme volatility.

That volatility has been compounded by a surge in leveraged exchange-traded fund investment tied to the two chipmakers, with assets under management in leveraged single-stock ETFs climbing from roughly $5 billion at the start of the year to more than $40 billion by mid-July. South Korean authorities halted approvals for new single-stock leveraged ETFs on July 16 in response to that rapid growth.

Strong export data adds to the positive tone

Beyond the technical rebound in chip stocks, Tuesday's rally was further supported by strong South Korean export figures. Chip exports reached record highs, according to Seoul Economic Daily, reinforcing investor confidence in the near-term earnings outlook for the country's dominant memory chip manufacturers even amid the broader volatility affecting the sector.

A currency and market recovering together

South Korea's currency also strengthened against the U.S. dollar as part of Tuesday's broader rebound, according to the Korea JoongAng Daily, reflecting improving investor sentiment toward South Korean assets following the difficult two-session stretch that preceded Tuesday's rally.

Corporate developments add to the momentum

Beyond the broader market recovery, Samsung Electronics separately announced plans to establish a new robotics division that will report directly to company leadership, according to Investing.com, a move that adds to the wide range of strategic initiatives the company has pursued as it continues expanding beyond its core memory chip and consumer electronics businesses.

With Tuesday's rebound helping stabilize sentiment following last week's steep declines, investors are likely to continue closely watching South Korea's export trends and broader developments in the global AI infrastructure investment cycle for further signals about the durability of the current recovery. At the same time, the trajectory of the U.S.-Iran conflict remains a key variable for both energy prices and broader risk appetite, with any further progress toward diplomatic resolution likely to provide additional support for South Korean equities, and Samsung shares specifically, in the sessions ahead.