On the afternoon of January 6 (local time), one day before the opening of CES 2025, Nvidia CEO Jensen Huang delivers a keynote speech at the Michelob Ultra Arena inside the Mandalay Bay Convention Center in Las Vegas, Nevada. (Yonhap)
SEOUL, Jan. 8 (Korea Bizwire) — South Korea’s stock market stumbled on January 7 after Nvidia CEO Jensen Huang revealed at CES 2025 that the company’s new GeForce RTX graphics processing unit (GPU) will use DRAM supplied by Micron Technology, sidelining Samsung Electronics and SK Hynix.
The announcement cooled investor sentiment, halting the recent rally that had lifted the KOSPI index above 2,500 for the first time in over 20 days.
The KOSPI closed at 2,492.10, up 0.14% from the previous session, as foreign investors purchased a net ₩157.6 billion. However, individual and institutional investors sold ₩203.2 billion and ₩42.9 billion, respectively, driving the index back below the key 2,500 mark after peaking at 2,521 earlier in the session.
Semiconductor Rally Falters
Semiconductor stocks had driven early gains, buoyed by a 3.43% rise in Nvidia shares to a record high of $149.43 in the U.S. market the previous day.
Other chip-related stocks, such as Micron Technology (+10.45%) and ASML (+7.58%), also posted strong performances. SK Hynix surged past ₩200,000 during the session for the first time in two months.
However, Huang’s keynote speech at CES dampened the rally when he confirmed Micron’s DRAM would be featured in Nvidia’s latest GPUs. Shares of Samsung Electronics and SK Hynix fell 0.89% and 2.4%, respectively, dragging down the broader market.
On the morning of January 7, as the KOSPI surpassed the 2,500 mark during trading, the KOSPI index is displayed on a status board in the dealing room of Hana Bank in Jung-gu, Seoul. (Yonhap)
Sector Divergence
While tech stocks faltered, other sectors saw gains. Defense and shipbuilding stocks surged following U.S. President-elect Donald Trump’s announcement of enhanced naval cooperation with allies. HJ Heavy Industries (+15.97%), Hanwha Ocean (+12.6%), and HD Hyundai Marine Solutions (+6.5%) led the charge, along with Hanwha Systems (+4.88%) and Hanwha Aerospace (+4.1%).
On the KOSDAQ, the index rose 0.05% to close at 718.29, marking its fifth consecutive gain. JYP Entertainment (+7.89%), Alteogen (+3.33%), and Rigencell Bio (+4.87%) were among the top performers.
Market Outlook
Analysts noted that while semiconductor stocks have driven recent rallies, their decline in late trading limited gains. Kim Ji-won, an analyst at KB Securities, highlighted upcoming events such as Samsung Electronics’ fourth-quarter earnings report on January 8 and the JP Morgan Healthcare Conference as potential market drivers.
Meanwhile, the Korean won strengthened, closing at ₩1,453.5 against the U.S. dollar, a 16.2-won gain, amid reports that Trump’s administration may scale back universal tariffs.
The mixed performance underscores the fragility of the recent rally, with investors closely watching global tech announcements and geopolitical developments.
M. H. Lee (mhlee@koreabizwire.com)
