‘Semiconductor Sector Falters Amid AI Bubble Concerns’... KOSPI Threatened at 4,020 Level [fn Afternoon Market Report]

According to Financial News, the Korea Composite Stock Price Index (KOSPI) fell to the 4,020 level on the 16th, weighed down by concerns over an Artificial Intelligence (AI) bubble originating from the United States (U.S.) and anticipation around employment data. Foreign investors have been offloading large volumes for a second consecutive day, dragging down leading semiconductor and other blue-chip stocks.
As of 2:10 p.m., the KOSPI was trading at 4,022.41, down 1.67% from the previous session. The index opened slightly higher at 4,093.32 (up 0.07%) but quickly reversed course, dropping to as low as 4,011.34 (down 1.94%) during the morning session.
On the main board, foreign investors and institutions net sold 617.6 billion won and 274.7 billion won, respectively, driving the KOSPI’s decline. Notably, foreigners continued their selling spree after nearly 1 trillion won in net sales the previous day, further straining market liquidity. Although retail investors net bought 906.3 billion won, their efforts were insufficient to support the index.
The market downturn stems from concerns about AI profitability that surfaced in the U.S. and spilled over into the domestic semiconductor sector. Overnight, Broadcom mentioned during a conference call that its AI revenue gross margin was low, causing its stock to fall 5.6%. Fears of an AI bubble and disappointing earnings from the U.S. have dampened investor sentiment toward domestic semiconductor giants such as Samsung Electronics and SK hynix.
Samsung Electronics, the largest stock on the Korean market, was trading down 1.34% at 1,034,000 won, while SK hynix plunged 3.07% to 5,370,000 won. The upcoming earnings announcement by Micron Technology on the 17th is expected to serve as a key inflection point for semiconductor investment sentiment.
By sector, the impact of geopolitical issues is clear. Defense stocks such as Hanwha Aerospace (down 2.97%) weakened after a senior U.S. government official mentioned the possibility of resolving the Russo-Ukrainian war. In contrast, shares in Samsung Biologics (up 1.41%), as well as healthcare, cosmetics, and food and beverage sectors, showed gains.
At the same time, the KOSDAQ index was down 1.98% at 920.25. On the KOSDAQ, foreign investors and institutions net sold 358 billion won and 46.7 billion won, respectively, while retail investors alone net bought 449.4 billion won.
Lee Jae-won, a researcher at Shinhan Securities, noted, “In addition to deteriorating investor sentiment due to AI concerns, caution over U.S. employment and inflation data to be released this week is prompting foreign capital outflows.”

elikim@fnnews.com Kim Mi-hee Reporter