On the 23rd, DB Investment Securities identified Nvidia, the leading U.S. artificial intelligence (AI) semiconductor company, as a key player driving the KOSPI’s breakthrough of the 3000 level. Amid a breather for AI representative stocks like Nvidia, the KOSPI has emerged as a new investment destination within the global rotational flow.
Kang Hyun-ki, a researcher at DB Investment Securities, said, “Typically, the stock market follows the trend of ‘leading stocks → related theme stocks → rotation’ to continue its upward trend,” adding, “When applied to the global market, a rotation is unfolding that starts with the U.S. AI representative stocks, followed by AI-related theme stocks, and then extends to the stock markets in China and Europe.”
Interpretations suggest that the KOSPI was able to break through the 3000 level as Nvidia, the global leading stock, entered a consolidation phase. While Nvidia’s stock price stagnated, investor sentiment shifted towards China and Europe, with these major markets generally showing an upward trend. During the same period, Korea was able to attract global funds due to changes in the political landscape and expectations for economic stimulus following the new government’s inauguration.
Researcher Kang elaborated, “June 20 of this year marks both the day the KOSPI broke through the 3000 level and the exact one-year anniversary of Nvidia’s stock price being described as promising while it has been stagnant.”
Kang noted that for the KOSPI to maintain its upward trend in this global rotational market, high-quality momentum is needed.
Kang said, “The key going forward is whether Korea’s export growth rate can rise after the end of the mutual tariff suspension by the U.S. Trump administration in early July of this year,” adding, “Until recently, there were significant expectations for domestic recovery in the Korean stock market, and attention may shift to the recovery of exports thereafter.”