KOSPI-Nasdaq Correlation Hits 5-Year High as AI Bet Worryingly Binds Markets

South Korea’s Kospi and the Nasdaq 100 have become unusually tightly linked, with their 60-day correlation rising to 0.50, the highest since 2021. The article argues that AI infrastructure spending is driving this cross-market behavior, since Samsung Electronics and SK Hynix now account for more than half of the Kospi and are heavily tied to the same hyperscaler capex theme powering U.S. semiconductor and tech names. This reduces diversification for global investors and increases the risk that a slowdown in AI spending could trigger synchronized declines in both markets. Recent examples include SK Hynix’s 13% drop and a prior Kospi chip selloff that helped push the Nasdaq 100 down 1.88%, alongside losses in Micron, Intel, and SanDisk. Samsung’s upcoming earnings guidance is highlighted as the next key read-through for the AI trade and market correlation.