Semiconductor stocks are showing strength in pre-market trading, buoyed by expectations of increased artificial intelligence (AI) investment and falling U.S. Treasury yields.

NextTrade reports that as of 8:11 a.m. (KST) on Tuesday, Samsung Electronics was trading at 282,000 KRW (about 208 USD), up 8,000 KRW (about 5.9 USD) (2.92%) from the previous session.

Other semiconductor-related stocks are also on the rise, with SK Hynix up 1.77%, SK Square gaining 2.93%, and Samsung Electro-Mechanics increasing by 2.73%.

The decline in U.S. Treasury yields is fueling a broader buying trend across large-cap stocks. LG Energy Solution has climbed 1.70%, while Hyundai Motor is up 1.25%.

In the NextTrade pre-market, the 575 stocks currently trading show an average return of 1.9%.

The domestic market is feeling the ripple effects of the overnight surge in AI and semiconductor stocks on Wall Street. On Monday, New York markets saw improved tech sector sentiment, driven by expectations of easing U.S.-Iran tensions, which led to drops in oil prices and Treasury yields. Meta's successful launch of its agent AI further boosted the tech rally.

Meta shares skyrocketed 11.4%, while Intel Corporation and AMD saw impressive gains of 12.1% and 10.0% respectively, highlighting a broad rally in central processing unit (CPU) and semiconductor firms.

Meta's new agent AI topping the U.S. App Store charts has sparked optimism that increased AI investment could drive up demand for CPUs and memory chips.

Market analysts point to a potential domino effect: the proliferation of agent AI could lead to increased CPU usage, driving server expansion, boosting DDR5 demand, and ultimately improving the bottom line for CPU and memory manufacturers. This scenario is seen as a key driver behind the surge in semiconductor stocks.

Han Ji-young, an analyst at Kiwoom Securities, notes that the U.S. 10-year Treasury yield has retreated to around 4.95%, while West Texas Intermediate (WTI) crude oil, which recently topped 100 USD, has fallen to 91 USD. This easing of macroeconomic pressures is amplifying the market's response to positive news, Han explains. It anticipates the domestic market will trend upward today, benefiting from the favorable macro environment and the spillover effects of the U.S. AI stock rally led by Meta.

Semiconductor stocks are showing strength in pre-market trading, buoyed by expectations of …

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