Samsung Electronics, SK Hynix, and major US Big Tech companies including Microsoft, Meta, Amazon, and Apple are scheduled to release second-quarter earnings reports on July 29-30, alongside the Federal Open Market Committee (FOMC) meeting on the 30th. The earnings announcements come as the KOSPI index experiences heightened volatility, with market participants seeking clarity on AI infrastructure investment plans and semiconductor demand outlook. Recent concerns about slowing AI investment have partially eased following Alphabet's capital expenditure guidance increase and confirmation of supply constraints, setting the stage for this week's earnings cycle to determine the direction of further KOSPI gains.
KOSPI Closes at 6755.75 on the 27th
The KOSPI closed at 6755.75 on the 27th, up 65.13 points (0.97%) from the previous session, according to the Korea Exchange. The index opened at 6806.27, up 115.65 points (1.73%) from the prior close, before fluctuating between gains and losses throughout the trading day.
US Big Tech Earnings Focus on AI Capital Expenditure Plans
Market analysts are monitoring whether other hyperscalers will maintain their AI capital expenditure expansion stance following the easing of AI investment slowdown concerns. Microsoft and Meta are scheduled to announce second-quarter results on the 29th, while Amazon and Apple will report on the 30th.
Samsung Electronics and SK Hynix Set to Report Earnings
SK Hynix will release earnings on the 29th and Samsung Electronics on the 30th. Analysts are focusing on explanations related to long-term supply agreements (LTA), memory demand forecasts, and profitability outlook from both companies. Market participants are particularly interested in whether SK Hynix will deliver results exceeding market expectations and announce shareholder return measures.
July FOMC Meeting Scheduled for Early Morning of the 30th
The July FOMC meeting is scheduled for the early morning of the 30th. Markets widely expect the Federal Reserve to keep interest rates unchanged. However, escalating US-Iran tensions and Red Sea blockade concerns represent variables that could trigger inflationary pressures. If the Federal Reserve does not signal additional tightening, bond yields and exchange rates could stabilize, potentially supporting foreign investor net buying and KOSPI rebound attempts.
NH Investment & Securities Forecasts KOSPI Range of 6700-7600
NH Investment & Securities projected a KOSPI range of 6700-7600 for this week. The firm cited resolution of AI CAPEX concerns and upward revisions to earnings forecasts as upside factors, while escalation of US-Iran military conflict was identified as a downside risk.
Lee Sang-jun, researcher at NH Investment & Securities, stated: "If AI supply shortages and CAPEX expansion trends are reconfirmed in other hyperscaler earnings following Alphabet, the KOSPI could regain upward momentum." He added: "While rising international oil prices and market interest rates due to US-Iran military conflict require caution, the likelihood of Trump easing his hardline stance is high as higher oil prices would increase his political burden." Lee also noted: "The ability to confirm specific comments on industry conditions, guidance, and shareholder returns from SK Hynix and Samsung Electronics earnings announcements is also a positive factor."
Prior Week Market Drivers Include Chinese AI Models and Geopolitical Tensions
During the prior week, domestic markets experienced expanded volatility centered on semiconductor stocks as Chinese AI companies including Moonshot AI and Alibaba successively unveiled low-cost, high-performance open-source models, raising concerns about potential weakening of US Big Tech AI competitiveness. Ongoing US-Iran military conflict and rising international oil prices and market interest rates also dampened investor sentiment.
Alphabet reported cloud results exceeding expectations and raised its CAPEX outlook for this year from $180-190 billion to $195-205 billion. The company also stated it would significantly expand investment next year, partially alleviating concerns about AI investment peaking. Cloud order backlog increased from $460 billion to $514 billion. The company's explanation that supply cannot keep pace with demand despite aggressive expansion led to assessments that AI infrastructure demand remains robust.
FAQ
Q: What earnings reports are scheduled for July 29-30?
A: SK Hynix will report earnings on July 29, while Samsung Electronics, Amazon, and Apple will announce results on July 30. Microsoft and Meta are also scheduled to release second-quarter earnings on July 29.
Q: What is the expected KOSPI range for this week according to NH Investment & Securities?
A: NH Investment & Securities forecasts a KOSPI range of 6700-7600 for this week, with upside factors including resolution of AI CAPEX concerns and downside risks from potential US-Iran military conflict escalation.
Q: What did Alphabet announce regarding its capital expenditure plans?
A: Alphabet raised its CAPEX outlook for this year from $180-190 billion to $195-205 billion and stated it would significantly expand investment next year. The company's cloud order backlog increased from $460 billion to $514 billion.
