The AI Energy Trade: Korea Flows Surge and Trump Bets on Nuclear

Foreign exchange flows are signaling a sector-driven rotation into Asia, specifically South Korea, as the “AI Hardware” trade matures beyond US equities. The KOSPI index breached 4,900 points, driven entirely by foreign and institutional buying, while retail investors exit.

Foreign Capital Targets Korean Chips

Unlike the US market, where the “Magnificent Seven” trade has fractured—leaving only Nvidia and Alphabet as clear leaders—Korea is benefiting from a unified bid on memory chips.

• SK Hynix has seen its target price raised to 1 million Won by JPMorgan, fueled by HBM4 (High Bandwidth Memory) dominance.
• Global funds have poured $4 billion into Korea-focused ETFs since May 2025, betting on the silicon required to power AI models.

Nuclear Power: The New AI Infrastructure

Simultaneously, the energy intensity of AI is reshaping US industrial policy. The Trump administration has unveiled a plan to quadruple US nuclear capacity by 2050 to meet data center demand.

Crucially for cross-border flows, this initiative is backed by $750 billion in commitments from Japan and South Korea. This massive capital expenditure commitment strengthens the long-term outlook for the Yen and Won against the Dollar, as these nations cement their roles not just as component suppliers, but as infrastructure partners in the US AI ecosystem.