KOSPI Hits Record High, SK Hynix Surpasses 1,000 Trillion Won Market Cap
The KOSPI hit a record high of 6,936.99, fueled by a surge in semiconductor giants Samsung Electronics and SK Hynix, with the latter crossing the 1,000 trillion won market cap threshold. While strong foreign and institutional buying driven by AI infrastructure optimism pushed the index up, concerns from brokerages like Citi and BNK over overvaluation and fears of delayed U.S. rate cuts remain key risks.
Domestic Market Briefing & AI Investment Ideas — 2026-05-05
Market Closing Summary
- KOSPI Index: 6,936.99 (Surged approximately +5% from the previous day, hitting an all-time high)
- KOSDAQ Index: Closed higher (followed the KOSPI rally)
Key Features
- Semiconductor Surge: Samsung Electronics and SK Hynix rallied together, driving the index higher. SK Hynix surpassed a market capitalization of 1,000 trillion won for the first time in history. Expectations for expanded AI investment fueled widespread strength in the semiconductor sector.
- Foreign and Institutional Buying: Sustained net buying from both foreign investors and institutions supported the index. The KOSPI opened at 6,782.93 (+2.79%) and climbed throughout the day, touching 6,937.00 just before the close.
- Continued Gains Despite Overvaluation Warnings: Despite some brokerages, including Citi and BNK, issuing overvaluation warnings and lowering target prices for Samsung Electronics and SK Hynix, share prices continued their rapid upward trend.
Market Features and Major Issues
1. SK Hynix (000660) — Market Cap Hits 1,000 Trillion Won
Optimism over surging demand for HBM (High Bandwidth Memory) used in AI servers propelled SK Hynix, making it the primary contributor to the KOSPI's rise. However, with Citi and BNK issuing warnings, investors should be cautious of short-term profit-taking pressure.
2. Samsung Electronics — AI Momentum Fuels Gains
Samsung Electronics also surged alongside SK Hynix, helping push the KOSPI above the 6,900 mark. The outlook for increased AI infrastructure investment is lifting all major semiconductor stocks, though long-term investors should monitor valuations following target price adjustments by some analysts.
3. Optical Communications & Cable Stocks — Up to 4x Surge in April
Some stocks related to optical communications and cables saw gains of 200% to 400% during April. The rush to build AI infrastructure drove these gains, and interest remains high in May. Caution is advised regarding volatility and accumulated short-selling balances.
4. JeRyung Electric (033100) — 52-Week High on U.S. Transformer Exports
JeRyung Electric hit a 52-week high of 89,800 won in May, driven by strong transformer export results to the U.S. This is linked to the structural growth of AI data center power infrastructure, though investors should watch for potential profit-taking at these levels.
AI-Driven Investment Ideas
① AI Semiconductor & HBM Sector — Potential for Continued Performance
Following the 32% KOSPI surge in April, AI infrastructure investment expectations continue to support the semiconductor sector in May. The demand for AI server HBM is a structural growth story. However, fundamental verification through earnings reports is necessary given recent overvaluation warnings.
② Power Infrastructure & Optical Communications — Benefiting from AI Data Center Demand
The sector saw massive gains in April, and companies like JeRyung Electric are hitting new highs. Increased power demand for AI data centers is moving beyond a short-term trend into a medium-term growth theme. Approaching during pullbacks may be more advantageous.
③ Middle East Reconstruction Construction & Steel — Potential Geopolitical Thaw
As of May 2026, analysts are eyeing construction and steel stocks on the potential for easing geopolitical tensions in the Middle East. Under the "post-war reconstruction" narrative, interest is rising. Note that the cycle of easing and escalating tensions remains a source of short-term volatility.
Investment Risks & Macro Context
- Delayed U.S. Rate Cut Fears: Concerns regarding the Federal Reserve delaying rate cuts continue to weigh on the domestic market, as a "higher-for-longer" interest rate environment burdens growth stock valuations.
- Middle East Geopolitical Risk: Uncertain oil prices due to Middle East tensions remain a volatility factor.
- 'Sell in May' vs. Earnings Momentum: May 2026 features a clash between the traditional "Sell in May" mantra and strong earnings momentum. As the KOSPI tests the 7,000 level, the possibility of large-scale foreign selling is an upside risk. Selective, large-cap-focused approaches are recommended.
- Short-Selling Risks: With the recent index surge, accumulated short positions in certain stocks could exacerbate volatility during any short-term corrections. Strict risk management is essential for chasing short-term trending stocks.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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