Palantir’s 93% revenue jump, hopes for reopening the Strait of Hormuz, and news that the top three memory makers already sold out their 2027 output all landed at once
The KOSPI opened strong today (the 5th), triggering a buy-side sidecar right out of the gate, and ultimately closed up 3.76% at 6,598.26. The Big Tech capex story we covered on this blog yesterday landed directly on Korean markets today. Overnight strength in US semiconductor and AI stocks, combined with news of progress in US-Iran negotiations over the Strait of Hormuz, revived appetite for risk assets. Here’s a breakdown of today’s session and what drove it.
A Buy-Side Sidecar at the Open, Closing Up 3.76%
The KOSPI opened up 244.53 points (3.85%) at 6,603.48, up from the prior close of 6,358.95. Buying pressure built rapidly right after the open, and at 9:24:56 AM, with mini KOSPI 200 futures holding a 5.12% gain for a full minute, a buy-side sidecar was triggered, temporarily halting program buy orders for five minutes. It was the 22nd buy-side sidecar of the year (45th including sell-side triggers). By 1:25 PM, the gain had widened to 3.95%, briefly pushing the index above 6,600, before easing back to close up 239.31 points (3.76%) at 6,598.26 for the regular session. The KOSDAQ closed up 18.87 points (2.42%) at 799.59, its fourth consecutive day of gains, briefly topping 800 intraday.
On the flow side, foreign investors net bought 1.4463 trillion won, effectively driving today’s gain. Individuals and institutions were net sellers of 1.1832 trillion won and 283.8 billion won respectively. Among large-cap names, Samsung Electronics rose 2.5% to 246,000 won, and SK hynix climbed 5.77% to 1,668,000 won. SK hynix’s Nasdaq-listed ADR specifically surged 8.17%, reportedly boosted by Wall Street research notes recommending an “overweight” rating.
Catalyst #1: Palantir’s Revenue Jumps 93%, Stock Soars 29%
Just like yesterday’s “Microsoft vs. Meta” story, today added one more piece of evidence that AI investment is translating into real revenue. Palantir, the AI-driven data analytics company, reported second-quarter revenue up 93% year-over-year to roughly 2.77 trillion won, sending its stock up 29.45%. Riding that momentum, Nvidia (+2.56%), Micron (+7.62%), and Intel (+10.84%) all rose in overnight US trading as well.
Catalyst #2: Is the Strait of Hormuz About to Reopen?
Geopolitical risk appears to be easing too. US Treasury Secretary Scott Bessent said, “An agreement could be reached today or tomorrow to reopen the Strait of Hormuz and move this conflict toward a more normal footing.” Oil prices reacted immediately: September-delivery WTI crude futures fell 5.7% to close at $75.77 a barrel. It’s being read as a sign that the Middle East-driven oil risk that has weighed on the KOSPI for weeks may be turning a corner.
Catalyst #3: The Big Three Memory Makers, “2027 DRAM and HBM Volume Already Sold Out”
News that the top three memory makers (understood to be Samsung Electronics, SK hynix, and Micron) had already sold out their entire 2027 DRAM and HBM output also stoked chip-sector sentiment. Lee Kyung-min, an analyst at Daishin Securities, said, “Yesterday’s clear strength in US semiconductor stocks confirmed that hyperscalers’ AI investment is continuing and generating profitability, which kept expectations alive. On top of that, news that the top three memory makers had already sold out their 2027 DRAM and HBM output added further upward pressure on share prices.”
This Time Really Was Different: Gains Spread Across Sectors, Not Just Chips
Unlike last month, gains genuinely spread across a wide range of sectors today. By sector, construction led with roughly 6% gains, followed by machinery and equipment at around 5%, electronics and manufacturing around 4%, and retail, insurance, and financials around 3%. Telecom and real estate were roughly flat, while food/beverage/tobacco and entertainment ended slightly lower. Kang Jin-hyuk, a senior analyst at Shinhan Investment, explained, “With oil and interest rates calming down, strong AI optimism flowed in, triggering the buy-side sidecar on the KOSPI. Semiconductor stocks’ upward momentum eased somewhat during the session, but as flows spread into non-semiconductor names and the KOSDAQ market, we saw a broader stock-picker’s market emerge.” On the KOSDAQ, Alteogen rose 3.75% after signing a licensing deal worth up to $365 million with a global pharmaceutical company, and optical communication stocks like Daehan Optical Communication (+18.57%) surged on news that the US is preparing legislation to ban imports of certain Chinese-made data center components.
Investor Takeaways and Expert Views
⚠️ Things Investors Should Watch
- Watch the “decoupling” between Korean and US chip stocks: Analysis shows that over the past month, Korean semiconductor stocks have declined more sharply than their US counterparts, widening the gap between the two. An asymmetric pattern has emerged where Korean chip names lag when US chip stocks rise, but fall harder when they decline.
- Individual investors took profits again today: While foreign investors drove the index higher, individuals sold more than 1 trillion won worth of shares. It’s worth considering for yourself what this recurring divergence in flows might signal.
- The Strait of Hormuz reopening is still just a “possibility”: Secretary Bessent’s comment doesn’t represent an actual deal, only that one “could” be reached. Uncertainty remains until an actual negotiated outcome is confirmed.
- Sector-wide gains are a positive sign: Unlike last month’s extreme concentration in just two semiconductor stocks, today’s rally spread across construction, secondary batteries, biotech, and more, a sign this rebound may be a healthier one.
📌 What Experts Are Saying
- Lee Kyung-min, Daishin Securities analyst: Assessed that the prior day’s clear strength in US semiconductor stocks confirmed hyperscalers’ continued AI investment and profitability, and that news of the top three memory makers selling out their 2027 DRAM and HBM output added further upward pressure on stock prices. He also noted that construction stocks rallied on renewed appeal from being undervalued relative to earnings.
- Kang Jin-hyuk, senior analyst at Shinhan Investment: Diagnosed that with oil and interest rates calming and strong AI optimism flowing in, the buy-side sidecar was triggered, and that as flows spread into non-semiconductor names and the KOSDAQ market, a broader stock-picker’s market emerged.
Taken together, today’s session was the direct transmission of yesterday’s US Big Tech AI investment optimism into Korean markets, reinforced by fresh evidence from Palantir. Add in hopes for a Strait of Hormuz reopening and news that the top three memory makers have sold out their 2027 output, and you get today’s triple catalyst. Unlike last month, gains genuinely spread across sectors rather than concentrating in just two stocks, a positive sign. Still, the ongoing decoupling between Korean and US chip stocks, and individual investors’ persistent profit-taking, are worth continuing to watch.
Sources
- Etoday — “KOSPI Nears Recovery of 6,600 Level on 1.4 Trillion Won in Foreign Buying… KOSDAQ Also Within Sight of 800” (etoday.co.kr)
- Herald Business — “‘Semiconductor Sentiment Revives’ KOSPI Closes Up 3.8%… Optical Communication Stocks Hit Upper Limit, KOSDAQ Rises Too” (biz.heraldcorp.com)
- Money Today — “‘This Undervalued Stock Caught a Rally’… Foreign Investors Return, KOSPI Surges Over 3%” (mt.co.kr)
- Hankyung — “KOSPI Rises Over 3% on 1.4 Trillion Won in Foreign Net Buying… KOSDAQ Up 2.4%” (hankyung.com)
- Etoday — “Less Upside, More Downside: A ‘Decoupling’ Emerges in Direction Amid Flow Shocks” (etoday.co.kr)