As Korea's stock market staged a historic rebound late last month, power equipment stocks, considered a key beneficiary of artificial intelligence (AI) infrastructure, also surged across the board. As expectations for expanded AI investment revived on the back of strong earnings from U.S. big tech and semiconductor companies, buying interest spread from semiconductor stocks to shares related to data center power infrastructure.
According to the Korea Exchange (KRX), Hyosung Heavy Industries closed at 2,417,000 won on the 31st of last month, up 523,000 won (27.61%) from the previous trading session. LS Electric ended the session at 184,800 won, up 34,500 won (22.95%), while HD Hyundai Electric closed at 684,000 won, up 101,000 won (17.32%).
Cable stocks also showed strength. Daewon Cable closed at 13,000 won, up 25.97%, while Gaon Cable finished at 134,200 won, up 24.72%, and LS closed at 267,000 won, up 19.46%. Power infrastructure-related stocks including Sanil Electric (18.54%), LS Eco Energy (18.50%), and Seojin System (18.28%) also posted double-digit gains.
This strength is attributed to the recovery of AI investment sentiment. The expansion of AI data center construction requires not only high-performance semiconductors but also large-scale power infrastructure investment, including transformers, extra-high-voltage cables, and power distribution equipment. As a result, the power equipment sector has been considered, alongside semiconductors, a representative beneficiary of AI infrastructure.
On the New York Stock Exchange, technology stocks surged across the board on the 30th of last month after Microsoft and Meta posted better-than-expected earnings and confirmed large-scale AI investment plans. As a result, the Philadelphia Semiconductor Index (SOX) rose 8.19%, its largest jump in one year and three months. Microsoft rose 15.51%, Micron 18.3%, SanDisk 25.8%, and SK hynix's American Depositary Receipts (ADR) 17.5%, fueling expectations for expanded AI investment.
Korea's stock market fully reflected this favorable wind. On the 31st of last month, the KOSPI closed at 6,595.45, up 1,001.89 points (17.91%) from the previous session, simultaneously setting record highs for both point gain and percentage gain on a closing basis. Following the surge in large-cap semiconductor stocks such as Samsung Electronics and SK hynix, buying interest spread across the entire AI value chain, driving power equipment and cable stocks to a strong rebound as well.
