NVIDIA Earnings Had Investors Eyeing the 7,000 Level, but the KOSPI Slipped Back to the 6,880 Range [Morning Market Report]

[Financial News] The KOSPI climbed to just below the 7,000 mark, but later gave back some of its gains and fell to the 6,880 range. NVIDIA Corporation, the world’s No. 1 AI semiconductor company, posted record-breaking earnings, but the results did not translate into a stronger domestic market.
As of 9:50 a.m. on the 27th, the KOSPI was trading at 6,888.09, up 79.88 points, or 1.17%, from the previous session. The index opened at 6,996.12, up 187.91 points, or 2.76%, but has since pared its gains.
On the main bourse, institutions and foreign investors were net buyers of 340 billion won and 79.3 billion won, respectively. Retail investors were net sellers of 637.7 billion won.
Among the large-cap stocks, Samsung Electronics (1.34%), SK hynix (2.19%), SK Square (0.85%), Samsung Electro-Mechanics (1.50%), LG Energy Solution (3.42%), and KB Financial Group (1.38%) were higher. Hyundai Motor Company (-1.96%), Samsung Biologics (-0.56%), Samsung C&T Corporation (-1.55%), and Samsung Life Insurance (-1.29%) were weaker.
By sector, electricity and electronics (2.05%), metals (1.86%), construction (1.57%), manufacturing (1.50%), and entertainment and culture (1.13%) were showing strength. Electricity and gas (-2.80%), real estate (-1.63%), distribution (-1.38%), textiles and clothing (-0.91%), and pharmaceuticals (-0.83%) were falling.
NVIDIA Corporation’s earnings release the previous day boosted expectations for AI investment, but concerns over macroeconomic factors such as interest rate hikes are limiting the market’s upside.
On the 26th local time, NVIDIA Corporation said its fiscal second-quarter revenue for May to July rose 106% from a year earlier to $96.22 billion, or about 133.2 trillion won. That was more than $4 billion above the market consensus of $92.17 billion.
Han Ji-young, a researcher at KIWOOM Securities, said, "NVIDIA Corporation delivered a surprise that exceeded expectations." She added, "It confirmed supply bottlenecks and sustained AI demand through 2028. Investor sentiment toward semiconductors, the market’s leading sector that had been under heavy pressure, is expected to enter a recovery phase for now."
Meanwhile, the Bank of Korea raised its benchmark interest rate by 0.25 percentage point to an annual 3.00% on the day. This marked a second straight increase, following last month’s 0.25-point hike to 2.75%, the first in three years and six months. The decision was interpreted as reflecting stronger-than-expected growth in the domestic economy and still-high inflationary pressure.
At the same time, the KOSDAQ was trading at 830.01, up 3.14 points, or 0.38%, from the previous session. The index opened at 828.42, up 1.55 points, or 0.19%, from the prior trading day.
On the KOSDAQ, retail investors were the only net buyers, purchasing 32.6 billion won worth of shares. Foreign investors and institutions were net sellers, offloading 25 billion won and 6.4 billion won, respectively.

[email protected] Lim Sang-hyeok Reporter