KOSPI Reclaims 5,500 as Chip Stocks Rally Despite Nvidia CEO Exit

The KOSPI traded above 5,500 on the 13th for the first time in six sessions, with large-cap semiconductor stocks leading the advance despite the resignation of Nvidia Chief Executive Jensen Huang.

The index stood at 5,501.86 as of 9:12 a.m., up 2.98%, according to the Korea Exchange. It opened at 5,452.41, up 2.05% from the previous session, then extended gains through the early morning. The last time the KOSPI traded above 5,500 was on the 5th of this month.

The 5,500 level is back in play six sessions after the index last held it.

Which stocks drove the advance?

Chip and component names carried the early move. As of 9:21 a.m.:

• SK hynix (000660.KS) traded at 1.298 million won, up 3.51% from the previous session
• Samsung Electronics (005930.KS) traded at 214,250 won, up 3.00%
• Samsung Electro-Mechanics (009150.KS) rose 3.72%
• SK Square (402340.KS) gained 1.64%

The gains came despite overnight turbulence around Nvidia on Wall Street. Nvidia fell more than 14% intraday in the wake of Huang's resignation before paring losses to close down 4.34%.

Why did rivals rise while Nvidia fell?

Investors treated the leadership change as a risk specific to Nvidia rather than a threat to the broader semiconductor industry, such as a pullback in artificial intelligence demand. The read showed up directly in the prices of Nvidia's competitors: AMD rose 5.86% and Broadcom gained 5.54%.

The market drew a line between one company's management shake-up and industry-wide AI demand.

What happened earlier this month?

The KOSPI plunged at the start of the month amid external shocks, including a so-called "blue wave" in the U.S. midterm elections in which Democrats won both the Senate and the House. On the 6th, the index fell more than 8% shortly after the open, triggering a circuit breaker, and briefly dropped below 5,000 during the session.

From a sub-5,000 intraday low on the 6th to above 5,500 on the 13th, the index has recovered the bulk of that slide within five trading days.

What do analysts expect next?

Han Ji-young, an analyst at Kiwoom Securities (039490.KS), said partial pricing-in of the bad news and bargain hunting should limit the downside even with external pressures such as Huang's resignation and rising interest rates and oil prices. She expects sector differentiation ahead.

"Foreign investors are broadening their buying beyond chips into banks, shipbuilding, autos and machinery, and net selling pressure is easing from before," Han said.

Foreign money is spreading from chips into banks, shipbuilding, autos and machinery — and the selling is fading.