Samsung affiliates rally as group market cap nears $1.6 tn

(Kim Ho-young)

Samsung group affiliates surged Thursday as investors piled into companies tied to Samsung Electronics following a tentative wage agreement that eased strike concerns and a strong earnings report from Nvidia that reignited optimism over the AI-driven chip boom.

According to Koscom data, the combined market capitalization of Samsung affiliates climbed 8.52 percent from the previous session to a record 2,346 trillion won ($1.56 trillion). The figure has more than doubled from roughly 1,100 trillion won at the start of the year and surpassed the previous all-time high of 2,322 trillion won set on May 14.

Samsung group stocks first crossed the 1,000 trillion won mark on Dec. 22 last year and moved above 2,000 trillion won earlier this month as Samsung Electronics shares rallied sharply.

Investors welcomed the reduced labor uncertainty at Samsung Electronics after labor and management reached a tentative wage deal just before a planned strike. Sentiment also received a boost from Nvidia’s quarterly earnings released Wednesday after the U.S. market close.

Nvidia reported quarterly revenue of $81.6 billion and operating profit of $53.5 billion, easing market concerns over the sustainability of the AI investment cycle.

Analysts also said expectations that Samsung Electronics may buy back roughly 30 trillion won worth of treasury shares to help finance future employee incentive payments added momentum to the stock.

The rally quickly spread to Samsung affiliates holding stakes in Samsung Electronics.

Samsung Life Insurance, Samsung Electronics’ largest shareholder with more than an 8 percent stake, jumped 13.78 percent to close at 355,000 won after hitting a record intraday high of 359,000 won. Samsung C&T rose 12.96 percent, while Samsung Fire & Marine Insurance gained 4.24 percent.

Some affiliates rose even more sharply on company-specific catalysts. Samsung Electro-Mechanics surged 13.48 percent after securing a silicon capacitor supply deal worth more than 1 trillion won. Samsung E&A climbed 8.23 percent on expectations tied to Middle East reconstruction projects, while Samsung SDS rebounded 12.44 percent after sliding the previous day on labor concerns.

The rally extended beyond Samsung. Shares tied to robotics themes within the Hyundai Motor Group and LG Group also jumped as investors rotated into physical AI and robotics plays.

Hyundai Mobis soared 25.23 percent, while Hyundai AutoEver gained 12.72 percent and Hyundai Motor advanced 12.5 percent. Investor enthusiasm has grown since Hyundai Motor Group unveiled a mass-production roadmap for the Atlas humanoid robot developed by Boston Dynamics earlier this week.

Analysts said Hyundai Mobis stood out because it exclusively manufactures key robotic components such as actuators and head modules supplied to Boston Dynamics.

Meanwhile, LG Electronics hit the daily trading limit after three consecutive sessions of declines, nearly erasing its recent losses in a single day. Investors increasingly view the company as part of the AI value chain rather than simply a home appliance maker because of its robotics and smart factory businesses.

LG Display rose 17.36 percent and LG CNS gained 12.64 percent, helping LG Group post the strongest market-cap increase among major conglomerates.

Brokerages also turned more bullish on South Korea’s stock market. Nomura Securities raised its Kospi target range to 10,000-11,000 from 7,500-8,000, citing a memory chip and high-bandwidth memory supercycle. The firm set target prices of 590,000 won for Samsung Electronics and 4 million won for SK hynix.

Shinhan Securities projected a second-half Kospi range of 7,000-9,300, while leaving room for a potential rise toward 9,900 under a bullish scenario.