For the first time ever, the combined market capitalization of South Korea's two most valuable companies, Samsung Electronics and SK Hynix, has eclipsed that of China's internet behemoths, Alibaba and Tencent. This seismic shift highlights the far-reaching influence of the global AI boom on the investment terrain within Asia's tech sector.

Investment in AI is now increasingly directed toward infrastructure, a trend that has notably benefited South Korean chipmakers, who sit at the heart of the supply chain. Consequently, their stock prices have soared to levels significantly higher than those of their Chinese counterparts.

The growth in performance of South Korean companies is primarily propelled by their production of high-end, high-bandwidth memory chips. Moreover, the strategic positioning of memory chips has undergone a transformation, with analysts predicting a potential supercycle that could extend until 2027.

On the other hand, China's AI industry, constrained by U.S. export controls, is pivoting towards domestic substitution strategies. This has led to a divergence in the performance trajectories of local tech stocks. While South Korean chipmakers, heavily reliant on supply-demand cycles, confront operational risks, Chinese internet giants leverage their strengths at the application level.

The AI industry landscape is vast and multifaceted. China boasts a colossal manufacturing ecosystem that is well-suited for industrial expansion, whereas South Korea shines in hardware prowess, maintaining a robust and stable industrial structure.