Samsung Electronics recorded its strongest daily performance in over 17 years on Tuesday, with shares jumping 11%. Its peer, SK Hynix, surged 9.3%, effectively reversing Monday’s steep decline. This buying spree pushed the Kospi index up 6.8% to close at 5288.08, a significant recovery from the 5.3% drop recorded just 24 hours earlier. The benchmark had already made history in January by breaching the 5,000-point threshold for the first time.

The Scale of the AI Rally

Market analysts suggest the upward momentum is far from exhausted. According to JP Morgan, the artificial-intelligence boom continues to inflate chip prices, providing a favorable backdrop for the two heavyweights, which represent more than one-third of the Kospi's total value. The firm projects that both Samsung and SK Hynix could see an additional 45% to 50% upside within 2026, potentially driving the Kospi as high as 7,500 by year-end.

Despite the bullish outlook, the session was marked by significant volatility. For the second consecutive day, the Korea Stock Exchange was forced to activate "sidecar" trading curbs to stabilize the market. This regulatory intervention followed a massive shift in sentiment as foreign and institutional investors, who were responsible for the prior day’s selloff, aggressively returned to the market as net buyers.

The current trajectory follows a blockbuster 2025, where the Kospi ended the year at 4214.17. With a 25% gain already recorded in the first weeks of 2026, South Korea remains one of the world's most watched equity markets. While the path forward may remain bumpy due to global market fluctuations, the fundamental demand for semiconductor hardware remains the primary engine for local growth.