KOSPI Today: South Korean Stocks Rebound as Nvidia Investment Lifts Naver and AI Chipmakers

Key Takeaways

• KOSPI rebounded after last week's sharp sell-off, led by semiconductor stocks.
• Naver surged nearly 8% after announcing a $1 billion strategic investment from Nvidia.
• SK Hynix and Samsung Electronics advanced on reports of massive long-term AI chip supply agreements.

Introduction

South Korean equities rebounded sharply on Monday as investors returned to AI-related technology stocks after last week's broad market correction. The KOSPI opened nearly 2% higher, with semiconductor shares leading gains after a series of announcements highlighted continued investment in artificial intelligence infrastructure. Japan's Nikkei 225 also recovered at the open, although gains proved more modest as investors remained cautious following recent volatility in global technology stocks.

KOSPI Recovers as AI Stocks Lead the Rebound

source:tradingview

The KOSPI opened around 1.7% higher before briefly extending gains to almost 2%, recovering part of the losses recorded in the previous session. Buying was concentrated in semiconductor and internet stocks, reflecting renewed confidence that AI-related capital spending remains one of the strongest themes supporting Asian equities.

Japan's Nikkei 225 also moved higher after the open, although its advance faded during the morning session as investors balanced improving regional sentiment against ongoing uncertainty surrounding global technology valuations.

Nvidia Investment Sends Naver Shares Higher

Investor attention centred on Naver after the company announced that Nvidia would invest $1 billion through a subscription to newly issued shares. The two companies also revealed plans to deepen cooperation on next-generation AI data centres and cloud infrastructure, reinforcing expectations that demand for AI computing capacity will continue to accelerate.

The announcement sent Naver shares almost 8% higher, making the company one of the strongest performers in the South Korean market. The deal also highlights Nvidia's strategy of expanding beyond semiconductor manufacturing by supporting AI infrastructure and cloud ecosystem development across Asia.

SK Hynix and Samsung Gain on AI Memory Chip Agreements

Semiconductor manufacturers also attracted strong buying interest after reports that Samsung Electronics and SK Hynix are preparing long-term AI memory chip supply agreements with major U.S. technology companies.

According to local reports, SK Hynix is expected to supply approximately $750 billion worth of AI memory products under long-term contracts, while Samsung Electronics could deliver around $200 billion in semiconductor products, including supplies for Broadcom. Separately, SK Group announced a broader strategic partnership with Nvidia covering AI factories, cloud infrastructure and next-generation HBM memory, alongside plans to develop a 2GW AI computing centre in South Korea beginning in 2027.

The announcements reinforced expectations that South Korean chipmakers will remain among the biggest beneficiaries of the global AI investment cycle.

Global Technology Sentiment Remains Mixed

Despite Monday's rebound in Asia, investors remain cautious after weakness in U.S. technology stocks at the end of last week. While the Dow Jones Industrial Average finished higher and the S&P 500 edged into positive territory, the Nasdaq Composite declined as semiconductor shares came under renewed selling pressure. The Philadelphia Semiconductor Index suffered one of its sharpest declines in recent weeks, reflecting profit-taking across AI-related stocks following an extended rally.

That backdrop suggests investors continue to differentiate between companies benefiting from new AI investment announcements and broader concerns over elevated technology valuations.

Easing Geopolitical Tensions Offer Additional Support

Market sentiment also improved after signs that tensions in the Middle East may be easing. Reports indicated that Iran would suspend military action if the United States halted further operations, while separate media reports suggested President Donald Trump had paused plans for additional military strikes. Although geopolitical risks remain, the developments reduced demand for safe-haven assets and provided modest support for risk-sensitive equity markets.

Outlook

Monday's rebound suggests that artificial intelligence remains the dominant driver of investor sentiment across Asian equity markets. Nvidia's latest investment, together with large-scale AI infrastructure agreements involving Samsung Electronics and SK Hynix, reinforces expectations that demand for AI hardware and data centre capacity will continue to support the semiconductor sector.

However, with U.S. chip stocks still experiencing heightened volatility, investors are likely to watch upcoming earnings reports and additional AI spending announcements closely to determine whether the latest rally can be sustained throughout the third quarter.