KOSPI jumps 4.61% on Samsung Electronics and SK Hynix rally as KB Securities warns of an “unprecedented memory chip shortage”
📌 Post Summary
South Korea’s KOSPI index closed up 4.61% at 6,995.39, just short of the psychologically important 7,000 mark. Foreign and institutional investors net-bought roughly ₩2.5 trillion and ₩2.6 trillion respectively, concentrating their buying in chip giants Samsung Electronics (+5.68%) and SK Hynix (+8.26%). KB Securities named both stocks its top picks in the sector, forecasting an “unprecedented supply shortage” in the memory chip market next year.
South Korean equities staged a historic rally on September 7, led by semiconductor stocks. A wave of chip-sector optimism from Wall Street combined with expectations of expanding global AI infrastructure investment to push the KOSPI to the edge of the 7,000 mark. Here’s a closer look at what drove the surge, exactly where foreign and institutional money went, and the industry outlook behind it.
① Today’s Market Snapshot
According to the Korea Exchange, the KOSPI closed at 6,995.39, up 308.18 points (+4.61%) from the prior session’s 6,687.21. The index jumped more than 3% right at the open and kept climbing through the session, peaking at 6,995.40 late in the day — just shy of breaking 7,000. The KOSDAQ also rose 1.07% to close at 822.19. The won strengthened as well, with the won-dollar rate falling 9.9 won to 1,340.5.
② Foreign and Institutional Trading — KOSPI and KOSDAQ Diverged
Today’s rally was driven by combined buying from foreign and institutional investors. On the KOSPI, foreigners net-bought ₩2.5533 trillion and institutions net-bought ₩2.6327 trillion, together injecting over ₩5 trillion into the market. Retail investors, by contrast, net-sold ₩6.8212 trillion — likely locking in gains after treating the sharp rally as a short-term peak. Interestingly, the KOSDAQ saw the opposite pattern: retail investors net-bought ₩186.9 billion there, while foreigners and institutions net-sold ₩67.5 billion and ₩131.2 billion respectively. Large-cap chip stocks drew foreign and institutional money, while smaller KOSDAQ names saw relatively more retail buying.
③ Where Foreign and Institutional Money Went
Today’s capital flows targeted chip bellwethers clearly. Samsung Electronics closed up ₩14,500 (+5.68%) at ₩270,000, while SK Hynix rose ₩136,000 (+8.26%) to ₩1,783,000. Related names also rallied broadly: Samsung Electronics preferred shares (+4.18%), SK Square (+8.07%), and Hanmi Semiconductor (+4.57%). On the KOSDAQ, chip materials, parts, and equipment names joined the advance — Jusung Engineering (+4.99%), EO Technics (+2.93%), Leeno Industrial (+2.70%), and Wonik IPS (+2.44%). By contrast, non-chip growth names lagged, with Rainbow Robotics (-2.40%), Robotis (-0.99%), and Alteogen (-0.87%) all in the red.
④ What Drove the Rally — AI-Fueled Memory Demand Optimism
Daishin Securities analyst Lee Kyung-min said that “while a September FOMC rate hike remains likely and international oil prices continue to rise, a strong rebound in the semiconductor sector drove the index higher.” Two specific catalysts stand out. OpenAI’s unveiling of its new AI model, “GPT-6 Astra,” fueled expectations of rising compute and memory demand, and on September 3, Nvidia finalized its acquisition of open-source AI platform Hugging Face for $12.93 billion (about ₩17 trillion), lifting investor sentiment across the AI ecosystem. Both events point in the same direction: AI expansion driving up memory demand.
⑤ Industry Analysis — KB Securities: “An Unprecedented Memory Shortage Is Coming”
Backing today’s chip rally was a report from KB Securities. The brokerage said the 2027 memory chip market will face the tightest supply environment in history, and that a powerful re-rating is set to begin for Samsung Electronics and SK Hynix, both currently trading at extreme discounts. Kim Dong-won, head of KB Securities’ research division, said global hyperscalers (massive data center operators) are sharply raising next year’s AI infrastructure spending estimates to $1.3 trillion, a 60% jump from this year. Memory chips’ share of total AI infrastructure investment is projected to more than quadruple in two years — from 14% in 2025 to 40% in 2026 and 57% in 2027.
The key reason supply can’t keep pace with demand is next-generation HBM4 high-bandwidth memory. Producing the same capacity in HBM4 requires three times as many wafers as standard DRAM, constraining overall supply growth given limited production lines. Samsung Electronics and SK Hynix reportedly saw their Q3 memory inventories fall below 10 days’ worth. Even so, both stocks have fallen 38% from their highs over the past three months, pushing their 2027 forward P/E ratios down to roughly 3x. Kim said, “Samsung Electronics and SK Hynix are expected to post record earnings for three consecutive years, and large-scale shareholder return policies are likely to continue,” adding that KB Securities maintains both as its top picks in the chip sector, given the potential for a strong re-rating from such extreme undervaluation.
📌 Key Takeaways
- Retail investors net-sold ₩6.8 trillion on the KOSPI alone today — likely profit-taking after the sharp rally. When foreign/institutional buying and retail selling diverge this sharply, it’s worth watching for further confirmation rather than assuming a clear direction.
- KB Securities’ supply-shortage forecast is based on projected 2027 earnings, meaning there’s a time lag before it plays out. Cross-checking with other brokerages’ reports is worthwhile before making investment decisions.
- The September FOMC rate decision and oil price trends remain live variables, so macro risks should continue to be monitored separately from the chip rally.
- Foreign and institutional investors net-sold on the KOSDAQ today, highlighting a different supply-demand temperature between large-cap chip stocks and smaller growth names.
Today’s surge reflects a combination of AI-driven memory demand optimism and aggressive buying from foreign and institutional investors. But with heavy retail selling and the September FOMC meeting still ahead, whether this chip rally is a one-off event or the start of the “supercycle” KB Securities described will become clearer through upcoming trading flows and earnings releases.
References
- Business Korea (businesskorea.co.kr) — “[Market Close] KOSPI surges 4.61%, closing just shy of 7,000”
- iNews24 (inews24.com) — “Foreigners, institutions sweep in ₩5 trillion… KOSPI closes just below 7,000”
- Financial News (fnnews.com) — “KOSPI smiles again… SK Hynix surges over 8%”
- Newspim (newspim.com) — “[Market Close] Foreign, institutional buying drives KOSPI up 4.61%, closing near 6995”
- Etoday (etoday.co.kr) — “KB Securities: ‘Unprecedented memory supply shortage coming next year… Samsung Electronics, SK Hynix extremely undervalued’”
- Solution News (solnews.co.kr) — “KB Securities: ‘Unprecedented memory shortage coming next year’… Samsung Electronics, SK Hynix inventories below 10 days”
- Hankyung (hankyung.com) — “Nvidia to acquire open-source AI platform Hugging Face for ₩19 trillion”