Kospi Slides Sharply as Investors Eye US AI Earnings, Spending Plans

CoreWeave to outline investment plans on Nov. 11

Nvidia earnings also in focus

US inflation and rate path remain key variables

South Korea’s stock market, reeling from fears of a pullback in US artificial intelligence investment, is heading into a crucial stretch of earnings reports from major companies. Brokerages say cheaper valuations alone are unlikely to revive sentiment, with investors focused instead on spending plans and earnings guidance from data-center operators.

According to the Korea Exchange on Nov. 7, the Kospi closed at 5,059.69 the previous day, down 6.02%. It fell as low as 4,911.28 during the session, triggering a circuit breaker. Compared with its close on Oct. 30, the index has dropped 11.71% over the past week. Selling was concentrated in semiconductor shares after the US midterm elections heightened the prospect of tighter data-center regulation.

The first major event for gauging sentiment toward semiconductor investment is CoreWeave’s earnings call, scheduled for the morning of Nov. 11 in South Korea. The event comes after concerns surfaced over a possible moratorium on AI data-center construction, and investors will be listening for details on the company’s investment plans and response. CoreWeave is set to hold the call at 5 p.m. Eastern Time on Nov. 10.

Korea Investment & Securities said in a Nov. 6 report that earnings from CoreWeave and Nvidia could serve as a catalyst for improving investor sentiment. If companies present concrete response measures and outlooks after the election, uncertainty over AI data-center investment could ease and help foster relief across the sector.

AI cloud company Nebius is due to report earnings on Nov. 12. In August, the company projected customer prepayments this year would exceed $9 billion. It also raised its year-end target for contracted power capacity to 5 gigawatts. Investors will be looking to see whether Nebius maintains its existing investment and business outlook and whether its data-center launch schedule has changed.

Nvidia is scheduled to report earnings on Nov. 18 in South Korea. The company will release results after the US market close on Nov. 17 and hold a conference call afterward. Korea Investment & Securities said the event should also offer a clearer view of data-center investment plans and the outlook.

Before those earnings reports, the US will release its October consumer price index on Nov. 10. September CPI rose 0.6% from the previous month and 3.7% from a year earlier. Core inflation, which excludes food and energy, also increased 0.3% from a month earlier. The October employment report released on Nov. 6 showed nonfarm payrolls rose by 165,000 and average hourly earnings climbed 0.4% from the previous month, keeping concerns over inflation and interest rates in focus.

This CPI report will not include year-on-year readings for many components because of statistical gaps caused by last year’s federal government shutdown. The October producer price index, a measure of companies’ cost pressures, is also due on Nov. 13.

Some analysts say Democratic control of Congress could ease pressure from interest rates and exchange rates over the medium to long term. Cho Yong-gu, a research fellow at Shinhan Securities, said US Treasury yields would likely fall and the dollar weaken modestly as the Trump administration faces constraints in pushing ahead with policy. That would also increase downward pressure on the won-dollar exchange rate.

Still, he said Democratic policies would be difficult to implement immediately given presidential powers and the veto. Investors also need to monitor President Donald Trump’s response, whether the pace of AI investment slows and the direction of the dollar.

Park Tae-hyung, head of the private banking branch at Woori Bank’s TCE Signature Center, said AI investment is tied not only to competition for dominance among countries but also to corporate survival. Markets should not assume the AI investment cycle will turn lower based solely on current concerns, he said.