SK Hynix and AMD Lead Chip Stock Rebound as Korea Becomes Key Market Catalyst

Global chip stocks rebounded on Monday, led by SK Hynix (up 5%) and AMD (up 4%), as South Korea's KOSPI index emerged as a new swing factor for semiconductor sentiment. The 60-day correlation between the KOSPI and NASDAQ 100 hit a two-year high of 0.46, up from a five-year average of 0.16. The rebound follows a brutal stretch for AI stocks, with Intel down 22% over the past month. The KOSPI, though down 25% from its June peak, remains up 62% year-to-date. AMD's fundamentals support the move, with Q2 revenue guidance of $11.2 billion (46% YoY growth) driven by data center demand. However, analysts caution that the rally appears mechanical rather than euphoric, given valuation risks and recent regulatory actions in Korea to curb speculation.