"AI Optimism Reignites as KOSPI Reclaims 7000"

AI Optimism Spreads Again in the U.S.
SK hynix ADRs Jump 13.8%
Alphabet Earnings Announcement Tomorrow Could Be a Milestone

The KOSPI index surged past the 7,000 mark in a strong start on the 22nd. The exchange rate, KOSPI, and KOSDAQ indices are displayed on the status board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. July 22, 2026. Photo by Dongju Yoon

Optimism surrounding artificial intelligence (AI), expectations for a recovery in semiconductor stocks, and Samsung Electronics' entry into the robotics business have together helped the KOSPI reclaim the 7,000 mark. The main driver behind the KOSPI's rally was SK hynix's stock, which surged more than 7% after its American Depositary Receipts (ADRs) jumped nearly 14% in the U.S. market.

AI Optimism Spreads Again in the U.S.

On July 22, as of 10:01 a.m., the KOSPI was trading at 7,093.50, up 5.12% from the previous session. Due to a rapid surge at the opening, a buy-sidecar (temporary suspension of program buy orders) was triggered around 9:06 a.m. It has been only four trading days since the KOSPI last recaptured the 7,000 level on July 15. At the same time, the KOSDAQ was up 2.33% from the previous day, trading at 770.92.

Buoyed by a resurgence of AI optimism, the Korean stock market followed the upward momentum from Wall Street. Overnight, the Dow Jones rose by 0.74%, the S&P 500 by 0.89%, and the Nasdaq by 1.29%. Major memory chipmakers such as Micron (up 12.17%), SanDisk (up 14.27%), and Western Digital (up 12.51%) saw double-digit gains, driving the Philadelphia Semiconductor Index up by 5.21%. SK hynix's ADRs in the U.S. also soared 13.75% to close at $171.94.

Global investment banks have continued to express positive views on AI and asserted that memory chip stocks have been excessively discounted, further supporting the rally. UBS recently explained the decline in AI-related semiconductor stocks as a result of large-scale position reductions by hedge funds, not a weakening of fundamentals. Morgan Stanley also projected that the memory semiconductor shortage would intensify through the year after next, suggesting that ongoing corrections represent buying opportunities.

Suh Sangyeong, a researcher at Mirae Asset Securities, stated, "The U.S. stock market rose as bargain hunting emerged for semiconductor stocks, which had suffered sharp declines recently, despite concerns about rising oil prices and interest rates due to Middle East instability." He further analyzed, "Robust semiconductor exports from Korea and expectations for increased AI investment have also contributed positively to U.S. semiconductor stocks."

Alphabet Earnings Announcement Tomorrow Could Be a Milestone

On the same day, the KOSPI saw a strong rally, led by semiconductor stocks. As of 10:04 a.m., the price difference between SK hynix shares and its ADRs in the U.S. exceeded 30%, with SK hynix rising 7.73% to 1,978,000 won. While SK hynix closed at 1,830,000 won the previous day, its ADRs stood at $171.94, translating to a value of 2,540,000 won for the underlying stock, prompting efforts to narrow the price gap.

Samsung Electronics was also trading 5.60% higher at 273,500 won, compared to the previous session. Other major shares by market capitalization, including SK Square (up 7.42%), Samsung Electro-Mechanics (up 9.92%), Hyundai Motor (up 7.46%), LG Energy Solution (up 4.10%), and Samsung Life Insurance (up 5.85%), were mostly showing upward trends.

Shares of robotics companies also soared after Samsung Electronics announced the establishment of a robotics division as a future growth engine the previous day. As of 10:16 a.m., Samsung Electronics subsidiary Rainbow Robotics was trading 25.15% higher at 515,000 won from the previous session. Other robotics-focused firms, such as Doosan Robotics (up 13.46%), Robotis (up 20.30%), and Robostar (up 19.69%) also recorded sharp increases.

Experts expect that the KOSPI still has a high potential for further earnings improvement and will likely attempt an additional rebound. They predicted that upcoming U.S. earnings announcements and capital expenditure (CAPEX) plans by big tech companies like Alphabet, Microsoft (MS), and Meta this month could provide further momentum for stock market gains.

Han Ji Young, a researcher at Kiwoom Securities, stated, "Market attention is now focused on Alphabet's earnings, which will be announced early tomorrow morning," emphasizing, "If Alphabet's core business growth rate remains robust in the second quarter and the trend of expanding CAPEX is reaffirmed, it will help improve overall risk appetite in the stock market, including for semiconductor stocks."

This content was produced with the assistance of AI translation services.