Weekly Market Leaders and Top 10 Picks — May 4, 2026

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Key Weekly Sectors

• AI Semiconductors and Infrastructure: As of April 30, the market was dominated by semiconductors, AI chips, AI power infrastructure, power grids, power equipment, transformers, cables, and solid-oxide fuel cells (SOFC). Expectations for AI infrastructure expansion drove massive gains in themes like fiber optics and cables, with some stocks even tripling in price over a short period.

• Steel and Construction/Gas Pipeline Themes: As of the April 28 market close, with the KOSPI up 0.39%, themes related to North-South-Russia gas pipeline projects (+11.11%), small-to-mid cap steel (+9.72%), and major steel stocks (+8.56%) surged. Institutional net buying of 353.2 billion KRW supported the index and fueled the rally in steel and construction shares.

• Shipbuilding: Beyond structural growth from rising ship prices and strong order books, the shipbuilding industry is being re-evaluated as a key growth engine due to the AI power bottleneck issue. Institutional buying is evident, with firms like Hanwha Engine seeing five consecutive days of accumulation.

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Top 10 Promising Stocks for Next Week

The following stocks were selected based on brokerage reports (April 28–30, 2026) and recent market trends.

1. Daeduck Electronics — Target price: 145,000–190,000 KRW. Beneficiary of FCBGA and memory MLB demand surge from AI infrastructure expansion.

2. HYBE — Target price: 370,000–430,000 KRW. Earnings surprise driven by music content; expected performance improvements in the entertainment sector.

3. HL Mando — Target price: 66,000–88,000 KRW. Key supplier for robotaxis and humanoids; expected gains from autonomous driving and robotics trends.

4. EcoPro BM — Target price: 220,000–280,000 KRW. Beneficiary of full-scale operations at the Hungary plant; signal of recovering demand for battery materials.

5. LG Electronics — Target price: 160,000–180,000 KRW. Strong Q1 performance with continued B2B and AI business growth.

6. Kakao Pay — Highlighted by brokerages for its "AI vertical competitiveness" and significant upside potential. Specifically mentioned in 143 reports from 26 domestic brokerages on April 28.

7. i-Sens — Selected as a high-upside stock in brokerage reports on April 28.

8. Dongkook Pharmaceutical — Selected as a high-upside stock in brokerage reports on April 28.

9. SK Hynix — Reported record-breaking Q1 earnings. Brokerages have steadily raised target prices amid expectations of an AI-driven semiconductor supercycle.

10. AIOS Tech (AIOS) — A NASDAQ-listed AI pivot company that jumped 136% in a single day. Gaining significant attention from domestic investors due to its explosive growth.

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Market Macro Environment and Strategy Analysis

Growth Drivers and May Market Outlook

The primary drivers for this rally are hopes for reduced Middle East tensions and a solid earnings season. President Trump's announcement of an extended ceasefire in Iran has boosted sentiment, and Q1 earnings growth is projected at a healthy 14%.

According to Financial News, the market may see limited upside this week due to a mix of technical overvaluation concerns and expectations for further growth. Researcher Byun noted that in years when the KOSPI rose more than 5% in April, it has never fallen in May, suggesting a temporary correction followed by a continued upward trend.

Herald Economy highlights that global markets rebounded remarkably fast since the outbreak of war, though it warns of a "Cautious May," noting that the current market is "driven by hope and liquidity."

Domestic Market Outlook

Lifetime News analyzed that after an adjustment period in March due to interest rate discounting, the domestic market stabilized and rebounded quickly in April. While geopolitical tensions in the Middle East persist, hopes for a ceasefire and stable oil prices remain.

Strategic Recommendations

• Use short-term corrections: In technically overheated zones, buying on dips is a better strategy than entering at new highs.
• Focus on AI and power infrastructure: Themes like fiber optics, cables, and transformers maintain strong momentum, with some stocks rising fourfold in April alone.
• Track steel and shipbuilding: These sectors are driven by geopolitical catalysts; monitoring the news flow is essential.
• Watch US FOMC and Big Tech: Keep a close eye on the US FOMC results and Big Tech earnings, as they could trigger short-term volatility.

※ This article is based on public news reports and summaries of brokerage reports. All investment decisions are the sole responsibility of the investor.