KB Securities Raises 2026 Kospi Target 40% to 10,500 on AI-Driven Earnings Outlook

Source

Korea Economic Daily

Summary

KB Securities said it raised its Kospi target index for this year by 40%% to 10,500 points.
It said memory semiconductors as well as Samsung Electronics, SK Hynix and Hyundai Motor's Boston Dynamics are being revalued as scarce strategic assets as AI investment expands.
It said concerns over a bubble collapse are limited because the chances of an economic-cycle breakdown or a sharp rise in interest rates over the next three to six months are low.

Forecast Trend Report by Period

"Earnings-driven market" … target index raised 40%

KB Securities has raised its 2026 Kospi target to 10,500, lifting its forecast by 40%. The brokerage cited stronger-than-expected earnings improvement in the domestic stock market as memory semiconductors are being revalued as scarce strategic assets amid expanding investment in artificial intelligence.

In a May 15 report titled "Kospi 10,500, the Ceiling Is Open," KB Securities analyst Lee Eun-taek wrote that the Kospi in 2026 is moving faster and more powerfully than even the strongest "three lows" boom in the market's history. He identified upward revisions to corporate earnings estimates tied to AI investment as the key driver of the latest rally.

KB Securities said earnings forecasts for Kospi-listed companies are rising faster than the index itself. Continued upgrades to profit estimates are also easing valuation concerns. While the benchmark has climbed rapidly, improving earnings expectations are supporting the advance.

The brokerage also pointed to the expansion of the AI industry as a catalyst for revaluing Korea's flagship companies. Lee wrote that the AI market entered the AI 2.0 phase in 2026 with agentic AI and is evolving beyond cloud-based server AI toward on-device AI. From 2028, the market is set to expand into physical AI, or AI 3.0, broadening the scope for growth.

Against that backdrop, Samsung Electronics, SK Hynix and Hyundai Motor's Boston Dynamics stand to be viewed not merely as hardware suppliers, but as scarce strategic assets that determine the performance of broader AI infrastructure.

KB Securities forecasts combined operating profit at Samsung Electronics and SK Hynix will surge to 630 trillion won this year from 91 trillion won last year, then rise to 906 trillion won next year.

On the possibility of a pullback after the recent stock-market surge, Lee wrote that any correction would likely be limited to easing short-term overheating. While some have raised concerns about a bubble bursting, he argued that bubbles do not collapse simply because prices have risen sharply.

For the rally to suffer serious damage, a clear trigger such as a breakdown in the economic cycle or a sharp jump in interest rates would be needed, the report said. KB Securities added that such signals are unlikely to emerge over the next three to six months.

Oh Se-seong, Hankyung.com reporter sesung@hankyung.com