South Korea’s largest initial public offering has reshaped Asian markets after SK Hynix secured $26 billion on Wall Street, renewing investor interest in artificial intelligence-linked stocks.
Record IPO fuels regional rally
The Korean memory-chip manufacturer, a primary supplier to Nvidia, priced its U.S. listing on Thursday. Shares rose 12% in early trading Friday, lifting broader market indexes. Japan’s Nikkei 225 reached a new high, Taiwan’s Taiex climbed 1.8%, and Hong Kong’s Hang Seng Index gained 0.9%.
The deal confirmed confidence in the AI hardware supply chain and eased concerns about a chip demand slowdown.
Trading volumes for Nvidia and other semiconductor stocks increased across the region. Some analysts cautioned the rally might fade if upcoming economic data falls short of expectations.
China’s AI leader surpasses $50 billion valuation
As SK Hynix celebrated its IPO, China’s DeepSeek announced a funding round valuing the AI startup above $50 billion. Founder Liang Wenfeng contributed $3 billion, the largest single investment in the round.
This valuation ranks DeepSeek among the world’s most valuable private AI firms. It also highlights Beijing’s effort to develop domestic alternatives to Western AI models, though U.S. export controls on advanced chips remain an obstacle.
The company has prioritized cost efficiency, offering cheaper inference than many rivals. While its models lag behind OpenAI in complex reasoning, DeepSeek’s rapid growth continues to draw attention.
Demand from U.S. and European funds outpaced Asian investors, with the deal oversubscribed 12 times.
Nvidia’s market capitalization remains near $3 trillion, making it the world’s most valuable company.
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Investment continues to flow regardless. Nvidia plans to spend $150 billion annually in Taiwan, where it sources most of its advanced chips. AMD this week announced a $10 billion investment in Taiwanese packaging facilities to support its AI accelerator roadmap.
Geopolitical tensions cast a shadow
The market optimism contrasts with rising U.S.-China tech disputes. WuXi AppTec filed a lawsuit against the Pentagon on Wednesday after being added to a blacklist over alleged ties to China’s military. The company called the designation “arbitrary and capricious” and seeks to block enforcement while the case proceeds.
WuXi, a contract research firm with $5 billion in annual revenue, warned the blacklisting threatens its U.S. operations and could disrupt drug development pipelines. The lawsuit may set a precedent for how aggressively Washington enforces restrictions on Chinese tech companies.
Alibaba, Baidu, Tencent, BYD, and Unitree were also added to the list. Unitree, a robotics startup, recently displayed its humanoid models at a Seoul fashion show, where they walked the runway in custom designs. The event provided a brief break from sector tensions.
India emerges as a new AI battleground
Meta and Reliance Industries signed an agreement this week to build an AI-powered data center in India. The facility will use Nvidia GPUs and serve both domestic and international clients, part of a broader push to access the country’s expanding digital economy.
India’s 1.4 billion internet users make it an appealing market, though regulatory and infrastructure challenges persist. The government has expressed support for AI development but cautioned against unchecked foreign control.
Nvidia CEO Jensen Huang, who frequently visits Asia, spent last weekend in South Korea meeting Samsung executives and appearing on a popular variety show. His message emphasized the global nature of the AI boom and the importance of current investments in shaping future computing.
Samsung’s shares rose 5% after the company reached a tentative pay agreement with its union, avoiding a strike that could have disrupted production. The deal still requires shareholder approval and may face legal challenges, but it offers temporary stability in an industry marked by rapid shifts.
U.S. tariffs on pharmaceutical exports could further strain trade relations, as recent reports indicate.
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