KOSPI Bursts into a Bull Market: Appetite for Chips Drives Index Up 20%
The key catalyst for the market was optimism around Sandisk (SNDK). The company's shares surged 13.7% on Thursday after management presented an ambitious long-term strategy. This momentum not only strengthened the company's own position but also triggered a wave of buying across the entire data storage and chip sector, which continued in Asian markets on Friday.
Sandisk Strategy: A Look at 2030
Investors reacted positively to Sandisk's plan to achieve double-digit revenue growth through 2030. The company also reaffirmed its intention to maintain adjusted gross margin at around 80%. CFO Luis Visoso outlined a clear priority: returning excess cash flow to shareholders after completing growth investments. This news inspired the market, and Evercore ISI analysts, noting new long-term contracts worth $93.9 billion, including three major clients with data centers in the U.S., reaffirmed a "buy" rating.
Rally Wave: From Seoul to New York
The effect of Sandisk's announcements spread across the entire industry. Micron (MU) shares jumped 4.2%, while South Korean giant SK Hynix (SKHY) gained 7.3%. Hard drive manufacturers Seagate (STX) and Western Digital (WDC) also showed solid gains of 4.9% and 7.3%, respectively.
On Friday, the rally continued in Asia: Japan's Nikkei 225 rose 1.73%, Topix strengthened 0.92%, and the KOSPI itself climbed 2.11%, breaking through the psychologically important 7000-point level for the first time in 15 trading sessions. The small-cap KOSDAQ index also did not lag behind, adding 0.84%.
Sustainability of the Bullish Trend
However, not all market participants are ready to unconditionally believe in a long-term reversal. Peter Kim from KB Securities attributes the previous decline more to technical factors and capital flows rather than a deterioration in the fundamentals of semiconductor manufacturers. In his assessment, the wave of forced liquidation of credit positions has already subsided.
At the same time, Jung In Yun from Fibonacci Asset Management Global urges caution, emphasizing that the current rise is not yet a full-fledged new bull market. Indeed, foreign capital inflows could hold the index at 7000, but further dynamics will directly depend on how long the optimism around Sandisk's forecasts can support the rest of the memory sector companies.
My view: the current dynamics are a classic example of a "rally on hope," backed by strong long-term contracts. However, the sustainability of this trend will be tested in the coming weeks. If other chipmakers' earnings do not confirm Sandisk's aggressive forecasts, we could see a correction. Right now, the key level for the KOSPI is holding 7000 points amid declining volatility.