KOSPI Falls More Than 3% on AI Profitability Concerns, Focus Turns to Memory and Corporate Governance

Oracle said it plans to raise $10 billion through a common stock offering and another $10 billion through a bond sale. The company said investment was needed to fulfill contracts it had already won, but the prospect of rising debt through bond issuance and equity financing heightened concerns over the cost of AI data-center investment.

Not long after saying it would limit additional fundraising through 2030, Oracle announced another plan to raise $20 billion. Although not all of the amount would be debt, the market questioned whether the company was backing away from its commitments to investors. Meta was also pursuing a $20 billion bond sale, while other funding announcements from big tech companies, including Alphabet, followed.

A revised filing related to Anthropic’s planned listing showed third-quarter revenue 3.4% below its previous disclosure, while its operating margin was revised down from 19% to 15%. Computing commitments rose from $855 billion to $895 billion, and computing costs as a share of revenue increased from 48% to 58%. The filing also put cash and short-term investments at $131.8 billion, indicating that the company was not immediately running out of capacity to invest.

Palantir reported revenue of more than $2.3 billion, beating market expectations, while earnings per share and adjusted operating income also exceeded forecasts. Its adjusted operating margin was 62%, and its Rule of 40 metric, which combines revenue growth and profit margin, came in at 158%. Free cash flow was positive, and the company raised its guidance for both the fourth quarter and the full year.

Particular attention focused on U.S. commercial revenue surpassing government revenue for the first time. This signaled that Palantir’s revenue base, previously concentrated in government and military-related business, was expanding into the private sector. Analysts said the company’s work applying AI to the operations and production processes of individual businesses, and improving efficiency as a result, was translating into actual revenue growth.

Apple beat expectations with revenue of $114.5 billion and earnings per share of $2.10, though analysts noted that the results included the benefit of tariff refunds. iPhone revenue was better than expected, but services, iPads and wearables were weak, while revenue in China also fell short of expectations. Gross margin was about 48%, but the company’s forecast for the next quarter was below market expectations. Apple said rising memory costs were the main reason for the expected decline in margins.

Apple said it would work with key suppliers to ensure stable supply but did not specifically mention long-term supply agreements. The company is also considering product price increases in response to the need to secure memory and rising prices. Apple said it would pursue both on-device AI and private cloud approaches and consider additional computing resources, but did not provide investment figures or a clear business plan.

Marvell and Lumentum agreed to merge. Under the announced terms, Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share, and the companies said the combined business could generate more than $1 billion in annual cost synergies. They forecast that earnings per share would increase starting in the first year after the deal closes.

Marvell specializes in digital signal processors, a key component of optical transceivers, while Lumentum focuses on laser modules. As optical communications become increasingly important for moving data within and between data centers, the combination of the two companies drew attention as an example of AI infrastructure investment extending toward optical connectivity technology.

The deal was described as a major merger and acquisition valued at around 150 trillion won. Lumentum also released its earnings alongside the merger announcement, but its shares plunged. The reaction reflected a market environment in which strong results alone are not enough to lift a stock; investors are also weighing deal terms, investment costs and the potential for future monetization.

Hanjin KAL shares hit the daily upper limit, and its market capitalization surpassed that of Korean Air. The stake held by Chairman Cho Won-tae’s side stood at 20.57%, compared with 20.15% for Hoban Group, narrowing the gap. The contest for control returned to the spotlight after Hoban Group applied to the Fair Trade Commission for a business-combination review following a change in the largest shareholder.

Chairman Cho Won-tae disclosed plans to spend about 37 billion won to acquire an additional 0.49% stake in Hanjin KAL. The purchase is expected to be carried out through a block deal and was interpreted as a move to maintain his position as the largest shareholder in response to Hoban Group’s growing stake. Hoban has steadily increased its Hanjin KAL holdings since 2022 by acquiring related funds and shares held by Pan Ocean, among other assets.

Neither side has a majority stake, leaving the positions of the National Pension Service, Korea Development Bank and Delta Air Lines as variables. Delta has been considered a friendly shareholder for Cho because of its partnership with Korean Air, while Hoban has also been cited as a possible buyer if Korea Development Bank sells its stake in the future. The latest share purchase is closer to an initial move to defend the position of largest shareholder than a resolution of the control battle.