This year, artificial intelligence (AI) has been at the center of the surge in South Korea's stock market during the first half of 2026. The benefits of AI have expanded beyond semiconductors to include power equipment and wiring infrastructure, leading to heightened attention on whether the optimism will translate into actual earnings as the second-quarter earnings season approaches.
According to the Korea Exchange, from January 1 to July 3, companies related to semiconductors and electronic components, such as Samsung Electro-Mechanics, SK Hynix, LG Innotek, Daeduck Electronics, Hanmi Semiconductor, DB HiTek, and Samsung Electronics, ranked high in the KOSPI's performance. Additionally, firms involved in power equipment and wiring, including Gaon Cable, Korea Electric Wire, LS, LS ELECTRIC, Hyosung Heavy Industries, and HD Hyundai Energy Solutions, also made significant gains, reflecting the spillover effects of increased AI investments into the power infrastructure sector.
The top-performing stocks in the first half can be categorized into four main groups. The most prominent were AI-related semiconductors and electronic components, followed by AI power infrastructure. Construction stocks, such as Daewoo Engineering & Construction and Kumho Industrial, benefited from expectations surrounding nuclear power and infrastructure investments. Holding companies like SK, Samsung C&T, and OCI Holdings were buoyed by anticipated corporate value enhancement policies, while financial stocks, including Mirae Asset Securities and Samsung Life Insurance, rose due to a booming stock market and increased trading volumes.
Notably, the expansion of AI investment benefits from semiconductors to power equipment and wiring infrastructure is considered the most significant change in the stock market during the first half of the year. Analysts suggest that increased investment in AI data centers has not only boosted demand for semiconductor components like high-bandwidth memory (HBM) and multi-layer ceramic capacitors (MLCC) but has also raised expectations for demand in power infrastructure, including transmission and distribution equipment, transformers, and wiring, leading to strong performance in related stocks.
Market observers note that attention is shifting from 'expectations' to 'actual results.' While the optimism surrounding AI investments lifted stock prices in the first half, the focus will likely turn to whether actual earnings can support this growth moving forward.
Shin Eol, a researcher at Sangsangin Securities, stated, "The market is entering a phase where it maintains confidence in AI growth while demanding verification of performance over valuation. Recent results from Micron have confirmed the sustainability of the AI investment cycle, but now the market is paying more attention to whether AI translates into actual corporate earnings." He added, "As the earnings announcement season approaches, it is time for a more careful selection process rather than a liquidity-driven capital movement."
* This article has been translated by AI.
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