[R&E] KOSPI Rises 0.69%, SK Hynix Claims No. 1 Market Cap for the First Time in History

[R&E: Research & Epoch] This is News Epoch's signature report that provides a perspective on a new era of investment through an integrated analysis of global financial data and domestic securities firm research.

Global Market Brief

The New York stock market closed mixed the previous day due to upward pressure on interest rates and the emergence of profit-taking in large technology stocks. The Dow Jones Industrial Average slightly increased by 0.29% from the previous day to 51,712.71p, but the S&P 500 Index and the NASDAQ Composite Index showed downward trends, recording 7,472.79p (-0.37%) and 26,166.60p (-1.32%), respectively.

The core cause of the index decline was the simultaneous weakness of large technology stocks. Alphabet plunged 4.99% amid news of successive departures by high-level AI researchers, while leading platform stocks such as Amazon (-4.75%) and Meta (-2.32%) led the decline. Furthermore, the US 2-year Treasury yield rose 4.9bp from the previous day to 4.2257%, soaring to the highest level since February of last year, and the 10-year Treasury yield also rose 5.6bp to 4.5088%, which acted as a burden on technology stock valuations.

On the other hand, the hardware-centric AI real-demand value chain recorded a differentiated flow. Micron surged 6.82% on the back of an announcement that it had signed a memory and storage supply contract with AI infrastructure company Anthropic. Super Micro Computer (SMCI) also skyrocketed 15.66%, firmly supporting the downside of the Philadelphia Semiconductor Index (+2.04%). This implies that even amid concerns over global liquidity contraction, the phenomenon of funds being compressed into the AI infrastructure hardware sector, which has secured substantial earnings visibility, is intensifying.

Domestic Market Overview

The domestic stock market closed higher the previous day, facing a historical inflection point of a change in the top market cap stock. The KOSPI rose 0.69% from the previous day to 9,114.55p, renewing its all-time high based on the closing price again. The KOSDAQ index also rose slightly to 968.40p (+0.19%).

The driving force that pulled the market was the change in the number one market capitalization company, which occurred for the first time in the history of the Korean stock market. SK Hynix surged 5.61% from the previous day, achieving a market capitalization of 2,080 trillion won on a closing price basis, surpassing Samsung Electronics (-0.14%) based on common shares to become the top market cap stock in the KOSPI for the first time since November 2000. The holding company SK Square also jumped 10.67%, proving the effect of a simultaneous influx of supply and demand.

In the Seoul foreign exchange market, the dollar-won exchange rate closed at 1,536.9 won, up 6.2 won from the previous day, continuing the trend of a weak won. The global dollar strength pressure resulting from the surge in US Treasury yields stimulated the rise in the domestic exchange rate, but the focused buying trend of semiconductors by foreigners flowed in, defending the index from further declines. It suggests that leadership within the domestic stock market is shifting to specific companies leading the high value-added memory market, such as HBM.

Industry Core Issues and Insights

Semiconductors: Change in Top Stock Proved by HBM Leadership and Strong Exports

The change of the top stock in the domestic stock market symbolically shows the profit leverage of the memory industry conditions led by HBM. SK Hynix taking the number one spot in market capitalization by securing earnings visibility with a portfolio centered on High Bandwidth Memory (HBM) amid a super-boom in AI semiconductors proves that the center of gravity of Korean semiconductors has shifted from general-purpose memory to high value-added HBM. Export indicators also support this. The cumulative export amount from June 1 to 20 was $62 billion (+60.4% YoY), showing a steep growth trend, and among this, semiconductor exports recorded $25.5 billion (+188.4% YoY), driving the improvement in the trade balance. This is the result of selling prices and shipment volumes rising simultaneously as the supply shortage in the memory market (-2.6% and -7.4% fulfillment rates for DRAM and NAND in the second quarter, respectively) became prolonged.

This downstream prosperity spreads to the re-evaluation of earnings for inspection and equipment companies. The semiconductor cleaning and thermal control equipment company YEST (KOSDAQ: 122640) resolved its judicial risk by winning the second trial of a patent dispute with a competitor. Applying a target P/E of 44.7 times to an estimated EPS of 1,116 won for 2026, the target stock price was presented as 50,000 won, revised upward by 43% from the previous estimate.

Power & Materials, Parts, and Equipment: Achievement of Entering the North American Supply Chain

Power and cable protection solutions company CPSYSTEM (KOSDAQ: 413630) achieved results in the North American market by signing a contract to supply its ultra-clean cable protection solution 'G-Clean Chain' to Intel's local plant in the US. Sales for the second quarter of 2026 are projected to increase by 20.4% year-on-year to 6.3 billion won, and operating profit is projected to increase by 29.3% to 900 million won, with the annual operating profit estimated to surge 87.0% year-on-year to reach 4 billion won. The solid export growth trend in China (+12.5% YoY) and other regions outside Asia (+12.6% YoY) based on 2025 offsets the slowdown in domestic demand, proving that domestic power and engineering materials, parts, and equipment materials have entered a mid-to-long-term beneficiary track amid the trend of global tech companies' supply chain localization and stability enhancement.

Market Signals

Historical Change in KOSPI Top Stock: SK Hynix rose 5.61% the previous day, recording a market capitalization of 2,080 trillion won, surpassing Samsung Electronics based on common shares to secure the number one spot in market capitalization for the first time since its foundation.

Soaring Semiconductor Exports: Semiconductor export amount from June 1 to 20 surged 188.4% year-on-year to $25.5 billion, leading the recovery of total exports ($62 billion, +60.4%).

YEST Judicial Risk Resolution: YEST won the second trial of a patent dispute, and its target stock price was presented at 50,000 won, revised upward by 43% from the previous estimate.

Epoch View: Investment Implications

While the global macro environment is fluctuating due to the surge in US Treasury yields and the expansion of volatility in technology stocks, the domestic stock market is passing a historical inflection point of a change in the top market cap stock based on HBM leadership. SK Hynix becoming the number one in market capitalization is an indicator showing that the performance contribution of Korean companies within the AI semiconductor value chain is structurally expanding beyond a simple concentration of supply and demand.

In the current market where the upside of the domestic demand and financial sectors is capped due to macro risks such as loan regulations and the surge in credit card loan balances, a compressed response to tech materials, parts, and equipment (MPE) and power equipment companies proving clear export performance and entry into the supply chains for global conglomerates is effective. Amid the noise of macroeconomics, focusing on leading stocks whose performance estimates are trending upwards based on differentiated supply capabilities is considered a valid approach to securing excess market returns.

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