Intel heads into its April 23 earnings with rising investor expectations , but the key question remains whether AI-driven CPU demand can offset ongoing margin weakness . Revenue Stable, But Margins Under Pressure Intel is expected to deliver Q1 revenue around US$12.4 billion , slightly above the midpoint of its guidance range. However, the real concern lies in profitability: Gross margin guided at 34.5% , down from 39.2% a year ago EPS near breakeven (~US$0.00) vs US$0.13 last year This highlights continued pressure from costs, utilisation, and product mix , despite improving demand signals. AI CPUs: A Key Growth Driver Intel’s near-term bullish case centers on AI-related CPU demand , particularly its Xeon processors. A key development is its partnership with Alphabet , which reinforces: Intel’s role in AI data centre infrastructure Growing demand for AI inference and general-purpose computing Investors will watch c...
South Korean equities have staged a strong comeback, with the Kospi erasing losses from the Iran conflict, driven by a renewed surge in AI-related semiconductor stocks.
Chipmakers Lead Market Recovery
The rally was led by tech heavyweights:
- SK hynix Inc +3.4% (intra-day)
- Samsung Electronics Co Ltd contributing to gains
The Kospi rose up to 1.2% above 6,200, extending a strong rebound that has pushed the index nearly 50% higher year-to-date, making it one of the best-performing global markets.
AI Demand Drives Semiconductor Momentum
The recovery reflects a resurgence in the AI investment theme, with strong demand for:
- Next-generation memory chips
- AI infrastructure and data centre capacity
SK hynix recently began production of advanced memory modules for Nvidia’s next-gen AI platform, reinforcing its position in the global supply chain.
Meanwhile, Samsung’s recent earnings showing an eightfold jump in profit have reassured investors about the strength of AI-driven demand.
Fundamentals Outweigh Geopolitical Risks
Despite earlier volatility caused by rising oil prices, analysts highlight that Korean equities are structurally driven by global tech cycles, rather than short-term geopolitical shocks.
Key supporting factors include:
- Elevated memory pricing
- Continued AI and power infrastructure capex
- Strong earnings momentum across tech and industrial sectors
This has led some strategists, including those at Goldman Sachs, to raise targets for the Kospi, signaling confidence in further upside.
From Near Bear Market to Global Leader
The rebound marks a sharp turnaround:
- Earlier, Korea’s energy-dependent market was hit hard by oil price spikes
- The Kospi approached bear market territory during peak conflict fears
- Now, sentiment has stabilised with improving fundamentals and earnings strength
Regional Tech Strength Stands Out
Korea and Taiwan continue to outperform, supported by:
- Semiconductor dominance
- Strong exposure to AI growth trends
In contrast, other regions are seeing slower earnings growth, making North Asian tech markets relatively more attractive.
Investor Takeaways
- Kospi has fully recovered war-related losses, driven by AI chipmakers.
- SK hynix and Samsung Electronics are key drivers of the rally.
- AI demand and memory pricing remain strong structural tailwinds.
- Korean equities are less sensitive to geopolitical shocks, more tied to tech cycles.
- The market remains one of the top global performers, with further upside potential.a
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