Semiconductor Giants

South Korean stocks are in a technical bull market, driven by renewed global AI investment. The Kospi has rallied significantly, led by chip giants Samsung Electronics and SK Hynix. This recovery, fueled by strong tech earnings and memory chip outperformance, signals growing investor confidence. While further upside is possible, a return of rising US Treasury yields and the dollar could temper the rally. For now, South Korea and memory stocks offer attractive near-term risk-on opportunities.

Friday’s market rebound offered a boost, but couldn’t erase earlier losses. The Nasdaq and S&P 500 ended the week down, while the Dow hit an all-time high, driven by a rotation into financials and industrials. Key themes included hyperscale cloud providers’ AI-driven capital expenditure plans, with Alphabet’s investments welcomed and Amazon’s facing investor scrutiny. Software stocks saw pressure amid AI competition fears, and sector rotation created opportunities in value and industrial names.