The KOSPI Index has entered a "bull" market amid renewed interest in AI
South Korea's Kospi stock index rose more than 4% at the start of trading on Thursday and entered a technical "bull" market. The index has rebounded by approximately 23% from its July 30 low, according to LSEG data cited by CNBC.
The main drivers of the rally were major chipmakers Samsung Electronics and SK Hynix. Samsung Electronics shares rose more than 4%, while SK Hynix shares gained more than 7%. The renewed investor interest in technology equipment manufacturers’ stocks is linked to the financial results of global technology companies, which point to continued significant spending on artificial intelligence.
According to David Morrison, senior market analyst at Trade Nation, the AI investment boom is not over yet. He highlighted the strong results of U.S. companies involved in artificial intelligence. In particular, shares of Supermicro and cloud provider CoreWeave rose following better-than-expected earnings reports.
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Memory chip manufacturers have a significant impact on the South Korean stock market, and their market performance is closely linked to demand for chips used in AI infrastructure. Fundstrat Global Advisors believes that a recovery in these companies’ stock prices could support further growth in the South Korean market.
Mark Newton, Head of Technical Strategy at Fundstrat, noted that the iShares MSCI South Korea ETF broke through an important technical level thanks to gains by Samsung Electronics and SK Hynix. According to Fundstrat, shares of memory manufacturers—which were among the hardest hit during the recent tech sell-off—began to outperform the broader tech sector for the first time since June. At the same time, Newton warned that the rally could lose momentum toward the end of the month if U.S. Treasury yields rise and the dollar strengthens.
