WSJ Tech News Briefing · Friday, August 28, 2026
The rally in South Korea's stock market was significantly driven by memory chip manufacturers like Samsung Electronics and SK Hynix, fueled by exploding demand from data centers and AI development. However, investor enthusiasm outpaced fundamentals, leading to a market correction.
“They have two really big companies there, Samsung Electronics and SK Hynix, that both manufacture memory chips, among other products.”
“And this whole rally in Korea really started last year when all chip makers, especially those that focus on memory, started to see exploding demand for their products from data centers, from companies that are building out AI tools.”
“So people are betting on the fact that memory is going to stay in demand for a long time and profits are going to be huge. But things that rise very far, very fast, they often correct down.”