Brokerages Lift Index Targets After AI Semiconductor Rally on May 14
Display board at the dealing room of KB Kookmin Bank headquarters in Yeouido, Seoul, on May 14 (photo provided by KB Kookmin Bank)
The KOSPI extended its record-setting run on May 14, breaking above the 7,900 level on strength in technology shares and rising expectations after brokerages lifted target index forecasts. As leading semiconductor stocks continue to set new highs day after day, some in the securities industry are even raising the possibility of a “10,000 KOSPI.”
According to the Korea Exchange, as of 9:15 a.m. on the day, the KOSPI stood at 7,916.24, up 0.92% (72.23 points) from the previous session’s 7,844.01. Earlier in the session, it came close to the 8,000 mark and renewed its all-time high once again.
Expectations for further gains in the domestic stock market are also growing in the securities industry. In its “KB Strategy” report published on the day, KB Securities raised its 2026 KOSPI target to 10,500 points from 7,500 points, a 40% upward revision. The firm said the improvement in the artificial intelligence-driven semiconductor industry and strong earnings at domestic companies are expected to continue.
Semiconductor-related stocks were again leading the index higher on the day. Samsung Electronics rose more than 2% from the previous session to break above 290,000 won ($209.93), renewing its all-time high. SK Hynix also gained more than 1%, reaching 1,994,000 won ($1,443.76) during intraday trading and setting yet another record high.
Other gainers included SK Square (+0.34%), Samsung Electronics preferred shares (+1.43%), Hyundai Motor (+1.13%), and LG Energy Solution (+1.63%).
By contrast, Doosan Enerbility (-0.17%), Samsung Electro-Mechanics (-1.46%), HD Hyundai Heavy Industries (-3.96%), Kia (-1.06%), and Samsung C&T (-0.58%) were weaker.
By sector, electronics products, displays, energy equipment, and healthcare were rising, while logistics, oil, shipbuilding, and electric utilities were under pressure.
In trading by investor type, individuals and institutions were net buyers of 490.7 billion won ($355.38 million) and 23.4 billion won ($16.92 million), respectively, while foreigners were net sellers of 490.7 billion won ($355.38 million).
The KOSDAQ was also extending its gains. At the same time, the KOSDAQ stood at 1,189.54, up 1.07% (12.61 points) from the previous session’s 1,176.93.
Among top KOSDAQ market-cap stocks, Alteogen jumped more than 6% to 377,500 won ($273.40), reclaiming the No. 1 spot by market capitalization. Investor sentiment appeared to improve on expectations that a risk factor had been removed after the U.S. Patent Trial and Appeal Board, or PTAB, invalidated Halozyme’s patent.
Other gainers included EcoPro BM (+1.01%), EcoPro (+1.78%), LigaChem Biosciences (+1.67%), and ABL Bio (+0.73%).
On the other hand, Rainbow Robotics (-0.11%), Kolon TissueGene (-2.44%), Samchundang Pharm (-0.13%), Leeno Industrial (-3.56%), and Jusung Engineering (-1.49%) were weaker.
In the KOSDAQ market, individuals and institutions were net buyers of 31.5 billion won ($22.79 million) and 800 million won ($0.58 million), respectively, while foreigners were net sellers of 21.9 billion won ($15.85 million).
Overnight, New York stocks ended mixed as enthusiasm for technology shares continued despite inflation concerns.
On May 13 local time, the Dow Jones Industrial Average closed at 49,693.20 on the New York Stock Exchange, down 67.36 points, or 0.14%, from the previous session. By contrast, the Standard & Poor’s 500 Index rose 43.29 points, or 0.58%, to 7,444.25, while the tech-heavy Nasdaq gained 314.14 points, or 1.20%, to finish at 26,402.34.
Although the U.S. Producer Price Index for April came in above expectations, reviving the possibility of an interest rate hike within the year, strength in AI-related big tech supported the market. Nvidia rose 2.29%, becoming the first U.S. company to surpass a market capitalization of $5.5 trillion.
Optimism on U.S. equities is also continuing on Wall Street. According to Bloomberg, Morgan Stanley Chief Investment Officer Mike Wilson said the S&P 500 could reach the 8,300 level within the next 12 months. He also raised his year-end target for this year to 8,000 from 7,800.
Ed Yardeni, chief investment strategist at Yardeni Research, also said in a recent investor note that he had raised his year-end S&P 500 forecast to 8,250 from 7,700, suggesting the bull market could continue.
Yoon Young-sil
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