Markets
May 6, 2026
Federal Reserve Balance Sheet Hits $6.7T as Treasury Holdings Surge
Samsung stock surged more than 15% on Wednesday. This aided in lifting the firm’s valuation past $1 trillion, and South Korea’s benchmark KOSPI index cross 7,000 for the first time ever. The move came after strong earnings from Samsung Electronics and growing investor confidence that demand for AI chips is still far from slowing down. The rally also pushed other semiconductor names higher. This is because global investors are steering into AI-linked trades.
Also Read: Companies Bought a Record 50,351 Bitcoin in Q1 2026 as Strategy Posts $12.5B Loss
Samsung’s Record AI Chip Earnings Sent South Korea’s KOSPI Above 7,000
Samsung Electronics became only the second Asian company, after Taiwan Semiconductor Manufacturing Company, to cross the $1 trillion valuation mark. Shares climbed after the firm posted stronger-than-expected first-quarter results last week.
Samsung reported an operating profit of 57.2 trillion won in the first quarter. This is up more than eightfold from a year earlier. Revenue rose to a record 133.9 trillion won. According to data, the firm’s quarterly operating profit also exceeded its entire profit for 2025.
AI Memory Chip Demand Remains the Top Driver
The latest rally has largely been tied to demand for high-bandwidth memory or HBM chips. These are widely used in AI servers and data centers. Samsung has been increasing production of its latest HBM4 chips as competition in the AI memory market intensifies.
Also Read: Federal Reserve Balance Sheet Hits $6.7T as Treasury Holdings Surge
SK Hynix also gained more than 10% during the session. Both these firms were seen leading the overall market higher. Reuters reported that Samsung and SK Hynix now account for about 44% of the KOSPI’s total value.
Dave Mazza, chief executive of Roundhill Investments, said the market reaction shows a major shift in how investors are viewing memory chip firms. He added,
“The trillion-dollar threshold carries material weight beyond the symbolism. More broadly, it reflects a market judgment that memory’s role in the AI infrastructure stack is structural, not cyclical.”
In addition, Morningstar analyst Yu Jing Jie pointed to tight supply conditions in DRAM and NAND memory chips. This is due to heavy AI-related demand. Meanwhile, Sam Konrad of Jupiter Asset Management said the memory market remains undersupplied. He believes that the prices of the above-mentioned chips will likely continue surging over the next few years.
Foreign Investors Eye South Korean Equities
The semiconductor rally pushed the KOSPI to a record high above 7,300 during trading before the index settled slightly lower by the close. Reports reveal that foreign investors bought a record 3.1 trillion won worth of South Korean shares in a single day.
Analysts say improving earnings across the technology sector are supporting the market rally. Mark Davids from JPMorgan Asset Management said corporate earnings growth is increasingly being driven by tech firms. He pointed towards the companies that are benefitting from AI infrastructure spending.
Analysts Believe the Rally Could Continue
Seo Sang-young of Mirae Asset Securities said the KOSPI could continue climbing if AI chip demand remains strong through the rest of the year. Seo noted,
“If the demand for AI chips continues at this level, the KOSPI could reach 10,000 points by the end of this year – but if the demand collapses with worries over inflation and weak growth due to the Iran war, it could plummet to as low as 4,500 points.”
Similar to Seo, not everyone expects the current pace to last long. Analysts have also warned that the market remains dependent on semiconductor performance. It could face pressure if global growth weakens or AI-related spending slows down.
Also Read: Goldman Projects Oil at $140 Worst Case as Iran War Cuts 2.5 mb/d Supply
