Samsung, SK Hynix shares leap after OpenAI chip deal

Core Viewpoint - Samsung Electronics and SK Hynix experienced significant stock price increases due to a partnership with OpenAI for the Stargate AI data centre project, adding $37 billion to their combined market capitalisation [1][2]. Group 1: Company Performance - Samsung Electronics shares rose by 4.7%, reaching their highest level in over four years [1]. - SK Hynix shares surged by 12%, achieving an all-time high [1]. - The partnership contributed to a more than 3% increase in the KOSPI index, setting a new record [2]. Group 2: Strategic Partnership - The collaboration with OpenAI involves semiconductor procurement and the establishment of two data centres in South Korea, aimed at enhancing AI infrastructure [3]. - The new data centres will initially have a capacity of 20 megawatts, positioning Seoul as a potential AI hub in Asia [4]. Group 3: Market Dynamics - Concerns regarding falling prices of high bandwidth memory (HBM) chips due to competition are expected to be alleviated by the strategic partnership, with anticipated increased demand from the Stargate project [2]. - The global AI boom is driving strong semiconductor demand, contributing to a significant rise in South Korea's exports in September, the fastest in 14 months [5]. Group 4: Trade Relations - The partnership may positively influence South Korea's trade negotiations with the U.S., particularly in light of President Trump's $500 billion Stargate initiative [3]. - South Korea aims to formalize a preliminary trade deal with the U.S. by late October, which includes a $350 billion investment in the U.S. in exchange for reduced tariffs on South Korean imports [5].