AI memory demand lifts KORU as Samsung, SK Hynix rally

AI-driven demand for server memory and enterprise solid-state drives lifted KORU, the 3x leveraged ETF that tracks Korean stocks, after strong rallies in Samsung Electronics and SK Hynix tied to tighter memory supply and increased chip orders.

KORU seeks to deliver 300% of the MSCI Korea 25/50 Index’s daily return. Samsung and SK Hynix are the index’s two largest holdings. The ETF’s daily leverage magnifies both gains and losses, and its structure is intended for short-term trading rather than a buy-and-hold strategy.

Market attention on memory chips has risen because AI infrastructure requires more server memory and enterprise SSD capacity. Shawn Kim, head of Morgan Stanley’s Europe and Asia technology team, noted: “The pressure is coming from AI infrastructure buildouts. We see servers accounting for 59 percent of DRAM demand by 2028, up from 37 percent in 2023.”

Kim added: “We also see enterprise solid-state drives reaching 65 percent of NAND demand, up from 18 percent. Data centers are taking a much bigger share of the memory pie.”

Supply constraints are limiting how quickly production can respond. New memory manufacturing capacity takes years to build, qualify and ramp. Kim warned that “this demand is running into a supply chain that cannot respond quickly. New memory capacity takes years to build, qualify and ramp up. Supply relief is a process, not a switch.”

KORU showed pronounced short-term volatility. On June 11 the ETF entered the session down more than 24 percent from the prior week and closed the same day having recovered those losses. Large moves in Samsung and SK Hynix driven by order flows and sector news have translated into sharp intraday swings for the fund.

U.S. memory maker Micron is frequently cited by investors focused on the domestic memory theme; KORU provides concentrated exposure to South Korea’s leading memory firms instead. Analysts say continued data center spending is likely to support memory demand through the rest of the year and to shape short-term trading activity in funds tied to Korean semiconductor names.