Weekly Top 10 Market Sectors & Stocks — May 4, 2026

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Top Weekly Sectors

• AI Power Infrastructure (Semiconductors, Cables, Optical Communications): Expectations for AI infrastructure expansion drove a massive rally in optical communication and cable-related stocks throughout April, making them top performers. Some stocks saw prices double or triple in a short time. As of April 30, key leads included semiconductors, AI chips, AI power, power grids, AI power infrastructure, power equipment, transformers, cables, fuel cells (SOFC), and Bloom Energy-related stocks.

  

• Steel, Construction, and Inter-Korean-Russian Gas Pipeline Projects: As of the market close on April 28, the Inter-Korean-Russian gas pipeline theme surged by 11.11%, followed by small-to-mid cap steel stocks (+9.72%) and major steel players (+8.56%). The KOSPI rose 0.39% to 6,641.02, supported by institutional net buying of 353.2 billion KRW.

• Shipbuilding: Shipbuilding stocks are being re-evaluated as a new growth driver, fueled by AI power bottlenecks and high-value ship performance. Sustained institutional buying was observed in Hanwha Engine for five consecutive days, with the industry's structural growth story—rising ship prices and a robust order book—gaining traction.

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Top 10 Promising Stocks for Next Week

A selection based on recent securities reports and market trends.

1. Daeduck Electronics — Target Price: 145,000 KRW ~ 190,000 KRW. Expected to benefit from spillover effects in FCBGA and memory MLB.

2. HYBE — Target Price: 370,000 KRW ~ 430,000 KRW. Anticipated earnings surprise driven by music content.

3. HL Mando — Target Price: 66,000 KRW ~ 88,000 KRW. Gaining attention as a core parts supplier for robotaxis and humanoids.

4. EcoPro BM — Target Price: 220,000 KRW ~ 280,000 KRW. Expected benefits from the full-scale operation of its Hungary plant.

5. LG Electronics — Target Price: 160,000 KRW ~ 180,000 KRW. Growth expected in B2B and AI sectors following a strong Q1.

6. Kakao Pay (377300) — Selected by brokerage firms as a stock with high upside potential, focusing on its "AI vertical competitiveness."

7. i-SENS (099190) — Noted by brokerage reports as having significant upside potential.

8. Dongkook Pharmaceutical (086450) — Noted by brokerage reports as having significant upside potential.

9. SK Hynix — Achieved record-high earnings in Q1; brokerage firms are consistently raising target prices. Expectation for a semiconductor super-cycle driven by AI demand continues.

10. AIOS Tech (AIOS, Nasdaq) — An AI pivot company that jumped 136% in one day. Drawing intense interest from Korean investors. Note: Exercise caution due to high volatility following the sharp short-term rise.

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Market Macro Environment and Strategy Analysis

May Market Outlook — "Weak Start, Strong Finish"

According to Financial News, following the KOSPI's record-breaking run, this week is expected to see limited gains due to a "mix of technical overheating burdens and additional upside expectations." However, one researcher noted, "Historically, there has never been a year where the KOSPI fell in May after rising over 5% in April," suggesting that "the upward trend will resume after a short-term correction."

Key Drivers of Growth

The primary drivers for the recent rise are expectations of reduced Middle East risk and a healthy earnings season. President Trump’s announcement of an extension to the Iran ceasefire has improved investor sentiment, and the Q1 earnings growth forecast remains solid at around 14%.

SK Hynix reported record-breaking earnings for the first quarter, exceeding market expectations and prompting brokerage firms to upgrade their target prices.

Key Variables for the Domestic Stock Market in May

According to Lifetime News, the domestic stock market underwent an adjustment period in March due to discount rate changes, but stabilized and rebounded quickly in April. While geopolitical tensions in the Middle East have not fully dissipated, the potential for a ceasefire and expectations of oil price stability are acting as stabilizing factors.

Investment Strategy Summary

• Re-entry strategy after short-term correction: While technical overheating signals are present, historical data suggests that a split-buying strategy during corrections is effective given the absence of negative precedents for May following a strong April.
• Continuous monitoring of AI infrastructure themes: As AI infrastructure-related stocks like optical communications and cables enter a "sorting out" phase following sharp spikes, selective investment focused on companies with solid earnings is advised.
• Maintain mid-to-long term interest in shipbuilding: The structural growth story involving high ship prices and a prosperous order cycle remains valid; keep an eye on sustained institutional buying.
• Watch exchange rates and geopolitical variables: Keep a close watch on KRW exchange rate trends and Middle East tensions, as these significantly impact foreign investor flows.

⚠️ Disclaimer: This analysis is informational content based on publicly available news and brokerage reports and does not constitute investment advice. Investment decisions should be made carefully at the individual's own discretion.