Asian Big Tech, a New Center of Gravity in the AI Rally

The center of gravity in the AI bull market has shifted from U.S. Big Tech to Asian semiconductors.

• TSMC, Samsung Electronics, and SK Hynix have emerged as the core of the AI supply chain, with U.S. Big Tech and Nvidia as their customers.
• Samsung's Q1 earnings grew 8-fold, with semiconductors accounting for 94% of 57.2 trillion won in results. Chip revenue also surged nearly 50-fold from the previous quarter.
• The KOSPI doubled in 6 months, and leveraged buying by South Korean retail investors hit an all-time high of 25 trillion won at the end of April.
• Samsung Electronics' market cap surpassed $1 trillion, SK Hynix approached $800 billion, and Taiwanese firms' production capacity is mostly booked through 2027.
• Taiwan's Q1 GDP grew 13.69%, and South Korea's grew 1.7%. Multi-year contracts and tight capacity suggest a prolonged AI cycle, but concerns remain over slowing AI company financing and high valuation warnings.