Semiconductor Stocks Rally on Big Tech's Surprise Earnings... KOSPI Hits Intraday Record High (Comprehensive)

Samsung Electronics Sets Record Results for Second Consecutive Quarter
U.S. Big Tech Expected to Continue AI Investments
Further Justification for Additional Gains in Samsung Electronics and SK hynix

The KOSPI index hit an intraday record high despite external uncertainties such as a surge in international oil prices and a hawkish rate freeze. Expectations that global big tech companies will continue their artificial intelligence (AI) investment cycle, combined with Samsung Electronics posting record-breaking results for the second consecutive quarter, drove the index upward. However, the early gains have somewhat slowed, and the KOSPI is currently hovering around flat territory.

On the 30th, the KOSPI index continued its rise for the fourth consecutive day, hitting an intraday record high. The domestic stock market index is displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul. Photo by Kang Jin-hyung

On April 30, the KOSPI opened at 6,739.39, up 0.72% from the previous trading day, and climbed as high as 6,750.27 during the session. As of 10 a.m., the KOSPI was trading at 6,688.34, down 0.04%, while the KOSDAQ was at 1,210.12, down 0.83%. Notably, Samsung Electronics led gains in semiconductor stocks after announcing operating profit from its semiconductor division approaching 54 trillion won. At the same time, Samsung Electronics was trading at 227,000 won, up 0.44% (1,000 won) from the previous session, and SK hynix was at 1,312,000 won, up 1.47% (19,000 won). The won-dollar exchange rate opened at 1,486.5 won, up 7.5 won from the previous session, and is trading in the 1,485-won range.

Overnight, the New York stock market ended mixed. The Dow Jones Industrial Average closed at 48,861.81, down 280.12 points (-0.57%) from the previous session. The S&P 500 index dipped 2.85 points (-0.04%) to 7,135.95, while the tech-heavy Nasdaq Composite rose 9.44 points (0.04%) to finish at 24,673.24.

On the U.S. market, where the first-quarter results of major big tech companies were all released on April 29 (local time), Alphabet (Google's parent company) surged more than 6% after hours as it met heightened earnings expectations. In contrast, Meta (Facebook's parent company) dropped more than 6%, despite posting better-than-expected revenue, after announcing plans to increase AI infrastructure investment this year.

The main factor behind the divergence in share prices was earnings performance. Alphabet reported first-quarter revenue of $109.9 billion, a 22% increase from the same period last year. This exceeded financial analysts’ forecasts of $107.2 billion compiled by LSEG, and marks the highest quarterly growth rate since 2022. Earnings per share (EPS) stood at $5.11, nearly double the market consensus average of $2.63. The key driver of revenue growth was the cloud segment. Google Cloud’s revenue skyrocketed 63% year-on-year to reach $20.02 billion, surpassing the $20 billion mark for the first time and far exceeding market expectations of $18.05 billion.

On the other hand, Microsoft, the world’s largest software company, posted an 18% increase in first-quarter revenue thanks to cloud growth, but fell short of market expectations. The company was also assessed as having failed to dispel investors’ concerns about massive AI infrastructure investments. Meta, which operates Facebook, Instagram, and WhatsApp, also beat market consensus with a 33% jump in quarterly revenue. However, concerns over stagnant user growth and the burden of AI infrastructure investment led to a sharp decline in its share price. On this day, Meta raised its 2026 capital expenditure guidance to $125 billion–$145 billion, up from the previous estimate of $115 billion–$135 billion.

For U.S. big tech companies, AI infrastructure investment is a double-edged sword. Earlier this year, Google, Amazon, Microsoft, and Meta all announced aggressive capital expenditure plans, sparking talk of an 'AI bubble' in the market. The combined capital expenditures (CAPEX) planned by these four companies for this year total $645 billion (about 957 trillion won), up 56% from the same period last year. With Meta having announced plans to further increase investment, that figure is expected to rise even more. Conversely, this is a positive development for Korean semiconductor companies such as Samsung Electronics and SK hynix, as well as for companies related to the AI investment supply chain such as power equipment makers.

Han Ji-yong, a researcher at Kiwoom Securities, said, "The fact that the four big tech companies have raised their combined facility investment this year suggests that the expansion of AI demand and the investment cycle may continue," adding, "This is likely to provide further justification for upward revisions of earnings consensus for domestic semiconductor stocks in the future."

This content was produced with the assistance of AI translation services.