[R&E] Tech Company Value Re-rating Accelerates: Hyundai Motor Surpasses KRW 95 Trillion Market Cap and Settles at 4,900, Deepening Differentiated Market Centered on AI Value Chain

[R&E: Research & Epoch]
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Market Overview: Key Indicators and Trends

Although the U.S. stock market was closed yesterday for Martin Luther King Jr. Day, New York stock market futures indices are expected to show a weak trend in the aftermath of former President Trump's tariff threats regarding Greenland (announcing a 10% tariff on February 1) and the plunge in European stock markets. As geopolitical uncertainties escalated, preference for safe-haven assets strengthened, and gold and silver prices broke all-time highs, with silver prices in particular surging 4.7% compared to the previous day. U.S. Treasury yields also rebounded, linking to the domestic bond market, where the 10-year government bond yield closed higher at 3.565%.

Despite these macroeconomic risks, the domestic stock market on the previous trading day broke its all-time high record based on strong internal growth momentum. Backed by foreign investors' net buying of KRW 554.3 billion, the KOSPI succeeded in breaking through the 4,900 level (+1.32%) for the first time in history, and the KOSDAQ also rose in tandem (+1.44%), demonstrating a solid market trend. The key driver of the market strength was the large-cap growth stock sector sharing structural growth themes such as SDV, robotics, and HBM. In particular, the KRX Auto Index recorded an explosive upward trend of 29.6% over the past month. Today, the domestic stock market may face downward pressure from Nasdaq futures weakness and profit-taking due to tariff uncertainties, but with strong expectations for fundamental improvements in key leading sectors, a differentiated market by stock is expected to continue amid limited volatility.

Key Industry Issues and Insights

Recently, market leadership has been secured by sectors undergoing a valuation re-rating from traditional manufacturing companies to high-tech companies. The automobile sector is a prime example, leading the stock price rally by materializing a Physical AI strategy centered on SDVs and robotics. Hyundai Motor surged 13% intraday on the previous trading day, surpassing a market capitalization of KRW 95 trillion and becoming the 3rd largest in KOSPI market cap, which is interpreted as reflecting strategic changes resulting from expectations of Boston Dynamics' IPO and the recruitment of external tech talent. In the related value chain, HL Mando is seen benefiting from the robot theme as the possibility of supplying humanoid-oriented actuators to a leading North American EV maker is raised.

The semiconductor industry is in a phase of accelerated recovery due to worsening memory supply shortages. Driven by increased server customer orders and the promotion of HBM price hikes, the range of DRAM price increases in the first quarter is estimated to expand to 18.0%, which leads to expanded earnings leverage for materials and components companies. Soulbrain is expected to recover KRW 1 trillion in annual sales and see a 54.4% growth in operating profit in 2026, while Wonik Materials is also expected to benefit from industry improvement and node transitions. In particular, Hanwha Vision, which is associated with HBM investments, is projected to see its operating profit increase by 39% in 2026 by expanding its TC bonder supply to SK Hynix.

Meanwhile, in the telecommunications and bio sectors, individual momentum is highlighted. SK Telecom rose 7.1% on the previous trading day due to advancing to the second stage of the government's Dokpamo project and the emergence of IPO momentum for its invested company, Anthropic. The value of its stake in Anthropic is evaluated to be up to 28.5% of its market capitalization. In the case of the pharmaceutical/bio sector, Hanmi Pharmaceutical went through a correction phase where its stock price plummeted excessively (-10.5%) due to the absence of clinical details from its global partner, despite favorable performance expectations such as a projected 123.6% growth in fourth-quarter operating profit. Considering the timing of academic conferences in the first half of 2026, this is highly likely to serve as a bargain hunting opportunity.

Market Signals

• Automobile Valuation Re-rating: Backed by the materialization of its SDV and robotics strategies, Hyundai Motor surged 13% intraday to surpass a market capitalization of KRW 95 trillion, ranking 3rd in KOSPI market cap.

• Expansion of DRAM Price Increases: Driven by increased server customer orders and the promotion of HBM price hikes, the range of DRAM price increases in 1Q26 is estimated to reach 18.0% quarter-over-quarter, with the memory industry recovery exceeding expectations.

• Silver Prices Break All-Time Highs: As geopolitical tensions escalate coupled with a weak dollar phenomenon, silver prices surged 4.7% compared to the previous day, breaking all-time highs and reinforcing preference for safe-haven assets.

Epoch View: Investment Implications

Today, there is a possibility that overall market volatility will expand as it faces the short-term macroeconomic uncertainty of global tariff threats. However, the fact that the market settled at the 4,900 level on the previous trading day, based on foreign supply and demand centered on large-cap stocks, proves that the domestic stock market's fundamentals are improving around structural growth themes.

Therefore, the market's focus should be placed on sectors possessing long-term growth momentum rather than short-term shocks. A strategy of expanding portfolio weighting is effective for the automobile value chain, which has been re-rated as tech companies through SDV and robotics momentum, and semiconductor materials/components sectors (stocks with clear earnings improvements in 2026) that can simultaneously enjoy the benefits of memory price rebounds and HBM Capex expansion. Furthermore, the trend toward advanced financial markets is accelerating, such as the NYSE's development of a 24-hour token securities trading platform and the listing of domestic high-dividend ETFs. Accordingly, incorporating companies with excellent shareholder returns that have high dividend payout ratios and share buyback rates to secure portfolio stability will also be a valid market defense tool.

This content was generated by News Epoch's proprietary AI algorithm, which tracks and analyzes public data from the research centers of major domestic securities firms in real-time. It is an objective summary based on collected data, and it is clarified that this is not an investment solicitation or recommendation for specific stocks.