KOSPI, can it break through 7,500 points with the help of semiconductors and AI?

KB Securities Research Director Kim Dong-won stated that the KOSPI still has significant room for growth and emphasized the main factor of profit growth trends centered around semiconductors. He predicts the KOSPI will reach a high of 2,750 points and believes that government policies to activate the capital market will support market gains. This is also related to the effectiveness of the “capital flow” strategy, which depends on increased liquidity.

Director Kim pointed out that technological developments related to artificial intelligence are the core drivers of the KOSPI’s rise. According to his analysis, AI is still in its early stages and, when combined with productivity innovations in humanoid robots, has enormous future potential. Additionally, he expects the introduction of AI to create synergistic effects with the semiconductor industry, leading to continued related investments.

Although recent foreign investment has shown a net sell-off in the KOSPI, he analyzes this as a result of short-term profit-taking. He believes that the outflows from the semiconductor and automotive sectors are likely temporary phenomena caused by economic cycle fluctuations. He added that, in the long term, foreign demand and supply are still expected to remain strong.

Regarding the increasing investment focus on ETFs among individual investors, Kim described it as a “trend of smart individual investors.” As individual investors become more focused on industry and ETF investments, different from the past, it is expected to have a positive impact on the overall market trend.

Kim believes the long-term outlook for the stock market remains optimistic, implying that growth trends centered around semiconductors and artificial intelligence are likely to continue in the medium to long term. However, he cautions that since the current KOSPI is in an overheated zone, investors should be alert to short-term volatility. This suggests that the market may experience adjustments later, and investors should develop appropriate strategies.