Nvidia Sparks a Korean Stock Frenzy: $12.8 Billion Floods In After Trump's Tariff Twist
This article first appeared on GuruFocus.
South Korea’s stock market could be entering its own AI supercycle. The Kospi Index surged 20% in Octoberits biggest monthly jump since 2001and kept the momentum rolling into November, climbing another 2.7% to a record high. Up 76% year to date, the benchmark has outpaced every major global index, powered by a wave of optimism surrounding Nvidia (NASDAQ:NVDA)’s new partnerships with Korean heavyweights. Investors are betting that this AI alignment, coupled with easing trade tensions following U.S. President Donald Trump’s visit, could reshape Korea’s position in the global tech hierarchy. Today’s rally is the Jensen Huang effect, said An Hyungjin of Billionfold Asset Management, referencing Nvidia’s CEO and his recent meetings with top executives from Samsung and Hyundai.
SK Hynix (HXSCL) is fast becoming the market’s focal point. Its shares spiked as much as 11% after Amazon (NASDAQ:AMZN) CEO Andy Jassy revealed plans to collaborate with the company on emerging AI technologies, including agentic systems. The move followed a blockbuster earnings report and a bold call from SK Securities analyst Han Dong-Hee, who doubled his price target to 1 million won and argued that the traditional cyclical lens no longer applies. Han also raised his target on Samsung Electronics, which climbed 3.5%. Jensen Huang’s whirlwind Seoul visitcapped by a viral dinner with Samsung’s Jay Y. Lee and Hyundai’s Chung Euisunfueled nationwide enthusiasm that Korea could be the next nerve center for AI manufacturing and innovation.
The excitement has spilled far beyond semiconductors. Stocks like Hyundai Motor Co., Naver Corp., and HD Hyundai Electric Co. are climbing on hopes of new AI-driven demand, while defense names such as Hanwha Aerospace and Hanwha Ocean rallied after a U.S.Korea deal to build a nuclear-powered submarine. A tariff cut on Korean exportsfrom 25% to 15%added more tailwinds. Since July, global investors have funneled $12.8 billion into Korean equities, drawn by President Lee Jae Myung’s supportive policies and the country’s growing AI ambition. The message from the market is becoming hard to miss: Korea could be positioning itself not just as a fast follower in techbut as one of the powerhouses defining the next AI decade.