[R&E] KOSPI Settles at 5,640 Amid Semiconductor Warmth from GTC 2026... Earnings-Driven Market Led by Massive Future Mobility and ESS Orders

[R&E: Research & Epoch]

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Market Overview: Key Indicators and Trends

The New York stock market showed strength the previous day as expectations for the expansion of the AI industry following the hosting of GTC 2026 by NVIDIA (NASDAQ: NVDA) stimulated buying across technology stocks. This warmth carried over to the domestic stock market on the previous trading day, serving as the driving force for the KOSPI to surge 1.63% from the previous day to close at 5,640.48. In particular, analysts indicate that the convergence momentum of semiconductor and automotive solutions unveiled at GTC was concentrated on large-cap stocks such as Samsung Electronics (KRX: 005930) and Hyundai Motor (KRX: 005380), leading the index's rise. On the other hand, the KOSDAQ closed 0.12% lower at 1,136.94 due to the concentration of supply and demand on large-cap stocks and the re-emergence of geopolitical risks in the Middle East in the afternoon.

Today's foreign exchange market is expected to start with a stronger won by around 3 won as the NDF exchange rate fell to the 1,486.28 won level, but international oil prices rebounded by 2.90% to 96.21 dollars on news of a drone strike in Iraq, heightening vigilance against inflation. In addition, raw material-driven cost-push pressures, such as a 557% surge in tungsten prices due to China's export restrictions and expanding military demand, are expected to act as major variables for the macroeconomy going forward.

Key Industry Issues and Insights

The semiconductor sector has entered a phase where both technological superiority and earnings visibility are secured simultaneously. Samsung Electronics taking on the contract manufacturing of NVIDIA's 4-nanometer inference AI chip, 'Groq3', is judged to be a watershed moment for expanding its foundry market share. In step with this, SK Hynix (KRX: 000660) has set out to solidify its global AI memory hegemony by executing a record-high facility investment of 30 trillion won and formalizing its review of a U.S. stock market listing. Samsung Electro-Mechanics (KRX: 009150) also rose 8.1% as it confirmed the supply of multilayer ceramic capacitors to a U.S. space company, making the expansion of its downstream industries beyond AI and into aerospace highly likely.

The automotive and auto parts industry is accelerating its structural transition toward autonomous driving and software-defined vehicles. Hyundai Motor and Kia (KRX: 000270) are broadening the scope of their cooperation with NVIDIA while raising technical maturity with the goal of launching Genesis G90 Level 3 autonomous driving in the third quarter. Auto parts maker THN (KRX: 019180) is estimated to see its operating profit for 2025 surge by 126% year-on-year to reach 70 billion won, driven by the new model effect of the Palisade Hybrid, making the transfer of earnings momentum within the sector a certainty.

In the secondary battery and energy sectors, massive order news continued. LG Energy Solution (KRX: 373220) signed a 6.4 trillion won energy storage system battery supply contract with Tesla (NASDAQ: TSLA), proving its strategy to overcome the temporary stagnation of the electric vehicle market through market preemption. In addition, Korea Zinc (KRX: 010130) secured the supply chain for indium, a core material for quantum computers, and established an unrivaled position accounting for 29% of the U.S. import volume. This serves as a basis for re-evaluating its value as a company that secures strategic assets, moving beyond a simple smelting company.

Market Signals

• Raw Material Supply Chain Bottleneck: Due to China's export restrictions and geopolitical crises, the price of tungsten has surged 557% year-on-year, making it inevitable to add to the cost burden across the defense and high-tech industries.

• Financial Sector Structural Improvement: Woori Financial Group (KRX: 316140) is expected to record a first-quarter net profit of 901 billion won, up 46.1% year-on-year, based on the complete subsidiarization of Tongyang Life Insurance and valuation gains from the sale of K-Bank stakes.

• Large-Scale Bio Contract Signed: Celltrion (KRX: 068270) signed a drug supply contract worth up to 375.4 billion won with a global pharmaceutical company, demonstrating its dominance in the biosimilar market.

Epoch View: Investment Implications

The current market is responding more sensitively to individual companies' earnings proofs and their grip on future supply chains rather than the uncertainty of macroeconomic indicators. In particular, it is analyzed that the technological innovation cycle led by semiconductors and automobiles has upgraded the profit fundamentals of domestic large-cap stocks to the next level. Although high oil prices and exchange rate volatility persist, a strategy of narrowly focusing on stocks equipped with cost control capabilities and sales channel diversification is effective, as seen in cases such as LG Energy Solution's massive order or Orion (KRX: 271560)'s profitability improvement due to a drop in raw material prices. It is a time when expanding the weighting in the materials sector, which holds a monopolistic position within the supply chain, is necessary to prepare for fluctuations in raw material prices driven by geopolitical risks.

This content was generated by News Epoch's proprietary AI algorithm, which tracks and analyzes public data from major domestic securities firms' research centers in real time. We clarify that this is an objective summary based on collected data, and not a solicitation or recommendation for investment in any specific stock.