Samsung and SK Hynix Fuel South Korea's Stock Rally
Samsung Electronics and SK Hynix led gains in South Korea's stock market on Wednesday morning, with pre-market trading showing around 4% strength. This surge in semiconductor stocks raises the likelihood of the KOSPI breaking back above 7,000 this week.
The rally is attributed to a combination of factors, including a rise in US semiconductor stocks and expectations for expanded AI computing demand. Jensen Huang, CEO of Nvidia, wrote on his X account that 'AGI has arrived' after OpenAI's unveiling of its next-generation model, GPT-6 Astra.
Nomura Securities maintains buy ratings on Samsung Electronics and SK Hynix, with target prices at ₩670,000 (approximately $500) and ₩4.7 million (approximately $3,500) respectively. The firm argues that the companies' share prices have fallen more than 30% and 40% from their peaks, bringing valuations down to an average of three times forward 2027 price-to-earnings ratios.
Large-cap stocks were also broadly higher, with Hanmi Semiconductor up 2.61%, LG Electronics rising 3.47%, Hyundai Steel climbing 5.08%, and BH increasing 4.81%. Iljin Hysolus surged 17.63% in the pre-market.