{"id":53932,"date":"2025-10-02T01:08:34","date_gmt":"2025-10-02T05:08:34","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/tech-giants-soar-on-openai-deal-japan-bonds-face-headwinds-amid-political-turmoil\/53932\/"},"modified":"2025-10-02T01:08:34","modified_gmt":"2025-10-02T05:08:34","slug":"tech-giants-soar-on-openai-deal-japan-bonds-face-headwinds-amid-political-turmoil","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-soar-on-openai-deal-japan-bonds-face-headwinds-amid-political-turmoil\/53932\/","title":{"rendered":"Tech Giants Soar on OpenAI Deal, Japan Bonds Face Headwinds Amid Political Turmoil"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Samsung Electronics<\/strong> ((\/stock\/005930)) and <strong>SK Hynix<\/strong> ((\/stock\/000660)) shares surged, adding a combined <strong>$37 billion<\/strong> to their market capitalization, following a strategic deal with <strong>OpenAI<\/strong> for its ambitious <strong>Stargate<\/strong> AI data center project.<\/li>\n<li><strong>SK Hynix<\/strong> ((\/stock\/000660)) stock soared <strong>12%<\/strong> to an all-time high, while <strong>Samsung Electronics<\/strong> ((\/stock\/005930)) jumped <strong>4.7%<\/strong> to a four-year peak, driven by anticipated exponential demand for high-bandwidth memory (HBM) chips.<\/li>\n<li><strong>Japan&#39;s 10-year government bond auction<\/strong> witnessed a fall in investor demand, influenced by heightened political uncertainty ahead of the ruling party&#39;s leadership election and growing risks of a <strong>Bank of Japan (BOJ)<\/strong> rate hike.<\/li>\n<li>The <strong>OpenAI Stargate<\/strong> project, a <strong>$500 billion<\/strong> initiative, is projected to require up to <strong>900,000 wafers per month<\/strong> as it expands, a figure more than double the current global HBM capacity, underscoring South Korea&#39;s pivotal role in the global AI ecosystem.<\/li>\n<\/ul>\n<p>South Korean chipmakers <strong>Samsung Electronics<\/strong> ((\/stock\/005930)) and <strong>SK Hynix<\/strong> ((\/stock\/000660)) experienced a significant rally in their shares on Thursday, propelled by a preliminary agreement with <strong>OpenAI<\/strong> to supply chips for its expansive <strong>Stargate<\/strong> artificial intelligence data center project. The partnership, announced late on Wednesday, sent <strong>Samsung<\/strong> shares to their highest in over four years and <strong>SK Hynix<\/strong> to an all-time high, collectively adding <strong>$37 billion<\/strong> to their market capitalization. This surge also helped push the benchmark <strong>KOSPI<\/strong> index more than <strong>3%<\/strong> to a record high.<\/p>\n<p><strong>SK Hynix<\/strong> ((\/stock\/000660)), a leader in high-bandwidth memory (HBM), saw its stock soar <strong>12%<\/strong>, while rival <strong>Samsung Electronics<\/strong> ((\/stock\/005930)) rose as much as <strong>4.7%<\/strong>. OpenAI CEO Sam Altman signed a letter of intent to enlist the two firms in his data center construction effort, a global undertaking that involves major players like <strong>Nvidia Corp.<\/strong> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and <strong>Oracle Corp.<\/strong> (<a href=\"\/stock\/ORCL\">ORCL<\/a>). The <strong>Stargate<\/strong> project, a <strong>$500 billion<\/strong> private-sector initiative, aims to build AI infrastructure in the U.S. and will also see <strong>OpenAI<\/strong> collaborate with the South Korean chipmakers to build two data centers in South Korea.<\/p>\n<p>Analysts suggest that the strategic partnership will alleviate concerns about potential HBM chip price declines next year due to intensifying competition, predicting a substantial increase in demand from the <strong>Stargate<\/strong> project. The projected demand for up to <strong>900,000 wafers per month<\/strong> as <strong>Stargate<\/strong> expands is more than double the current global HBM capacity, highlighting the project&#39;s immense scale and its role in accelerating global AI development. Beyond the core chipmakers, <strong>Samsung Electronics&#39;<\/strong> affiliates such as <strong>Samsung SDI<\/strong> ((\/stock\/006400)), <strong>Samsung C&amp;T<\/strong> ((\/stock\/028260)), and <strong>Samsung SDS<\/strong> ((\/stock\/018260)) also saw sharp increases in their shares due to related partnerships with the U.S. firm.<\/p>\n<p>Meanwhile, <strong>Japan&#39;s 10-year government bond auction<\/strong> experienced a fall in investor demand, reflecting a cautious market sentiment. This decline was primarily driven by escalating political uncertainty ahead of the ruling Liberal Democratic Party&#39;s leadership election scheduled for October 4, coupled with growing expectations of a <strong>Bank of Japan (BOJ)<\/strong> rate hike. Recent demand for government bond auctions has been described as <em>lukewarm<\/em>, with the previous 10-year auction&#39;s demand falling below the 12-month average.<\/p>\n<p>Concerns over the <strong>BOJ&#39;s<\/strong> monetary policy trajectory are intensifying, with some policymakers backing further rate hikes if growth and inflation forecasts hold. <strong>BOJ<\/strong> Deputy Governor Ryozo Himino has suggested the central bank should continue its path of raising interest rates, even while acknowledging global economic uncertainties. Traders are currently pricing in a <strong>46%<\/strong> chance of a quarter-point rate increase by the end of October. The yield on Japan&#39;s 10-year government bonds has been hovering near levels not seen since 2008, reflecting the market&#39;s anticipation of tighter monetary conditions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Samsung Electronics ((\/stock\/005930)) and SK Hynix ((\/stock\/000660)) shares surged, adding a combined $37 billion to their market capitalization, 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