As the KOSPI broke through the 7,000 mark with the semiconductor sector surging 41% in just two and a half months, retail investors scrambling to join the bull market late are facing deeper dilemmas. Experts recommend finding alternatives in sectors linked to the AI value chain and in stocks that directly benefit from the stock market rally.
Chips Opened the Door, AI Value Chain Spreads Demand
According to the financial investment industry on Monday, the sector with the highest gain during the two and a half months the KOSPI surged from 6,000 to 7,000 was electrical and electronics, which includes semiconductors, rising 41%. Construction gained 38% and machinery posted gains in the 30% range, while securities and financial sectors rose 13% and 9%, respectively.
While the prevailing view is that semiconductors opened the door to the KOSPI 7,000 era, experts recommend broadening the view across related sectors driven by spreading AI demand, rather than concentrating on a single sector.
Areas drawing attention within the AI value chain are power equipment and nuclear power. The structure is such that as data center investment grows, power demand grows along with it.
"As AI demand strengthens, capital expenditure outlooks for hyperscalers (ultra-large cloud operators) are being revised upward," said Kim Jae-seung, a researcher at Hyundai Motor Securities. "As AI investment competition expands, power equipment is also among the most important beneficiary sectors." Analysts say the automotive sector, which has entered a re-rating phase along with the development of physical AI, also falls into this category.
The expansion of AI investment is also backed by figures. U.S. GDP grew 2.0% annually in the first quarter of this year, with AI infrastructure investment leading that trend. Investment centered on data centers, servers and network equipment is estimated to have swelled 73% from a year earlier.
Brokerages, Construction, Defense Also Draw Attention… "Concentrated Investment Remains Effective"
The securities sector, which directly benefits from rising stock markets, has also been added to the list of promising candidates. The securities industry index jumped 13.5% in a single day on Monday, posting the steepest gain among all sectors. "As the stock market rises and trading volume and margin loan balances increase, the securities sector, where earnings growth is expected, is also worth investing in," said Choi Do-yeon, head of the research center at SK Securities.
Expectations for construction stocks are also rising. The setup combines expanding nuclear power demand with hopes for Middle East reconstruction following the end of the U.S.-Iran war. Domestic construction companies are participating in "Team Korea," a nuclear power export consortium, and working to expand overseas orders. "Hyundai Engineering & Construction and Daewoo E&C are expected to proceed with nuclear power contracts in the second quarter, and Samsung C&T and Hyundai E&C are expected to participate in the third-quarter Team Korea bidding," said Kim Seung-jun, a researcher at Hana Securities. "Expectations related to Middle East reconstruction following the end of the war will also continue."
Positive views on shipbuilding and defense, the existing market leaders, are also continuing. "Through the summer, we should maintain a portfolio of semiconductors as market leaders, along with power equipment, securities, defense and renewable energy," Kim Jae-seung said. "Concentrated investment centered on the sectors and stocks leading the market is expected to remain effective."
A historic KOSPI 7,000 bull market! Is a '36 trillion won bomb' about to detonate?
