Chip stocks gain as Philadelphia Semiconductor Index hits 2-year high

South Korean semiconductor stocks are gaining ground on Tuesday morning after the PHLX Semiconductor Sector Index (SOX) hit its highest level in nearly two years.

The nation’s leading chip stock, Samsung Electronics Co., traded at 74,400 won ($56.48) on Tuesday at 9:06 a.m., up 0.55 percent from the previous trading day.

Shares of SK hynix Inc. are also up 1.63 percent, trading at 131,000 won.

Earlier on the New York Stock Exchange, hopes that the expansion of the artificial intelligence (AI) market would boost the chips industry drove the prices of relevant stocks upwards, including Micron Technology Inc., which was up 3.78 percent, Advanced Micro Devices Inc. (AMD), up 4.26 percent, and Broadcom Inc., up 9.00 percent.

SOX also climbed 3.40 percent to 3,902.39 on Monday local time, the highest level since January 2022.

“Given the sharp rise in SOX, the Korean stock market is also likely to show different trends in different sectors, led specifically by chips,” Kiwoom Securities Co. analyst Han Ji-young said.