KOSPI Plunges More Than 3% on U.S. Midterm Election Shock… AI Investment and Semiconductor Demand Remain Resilient

Hanjin Group Chairman Cho Won-tae consolidated control after past disputes among members of the Hanjin family and a shareholding contest involving the KCGI fund. Hoban Group, which had participated in the fund, began indirectly acquiring shares in Hanjin KAL in March 2022 and has since increased its holdings by purchasing the fund’s stake and shares held by Pan Ocean, among others. Although some in the market expected Hoban to abandon the contest, it continued buying shares.

Until recently, Cho’s side was reported to hold 20.57%, compared with 20.15% for Hoban. Stakes held by the National Pension Service, the Korea Development Bank and Delta Air Lines, which has a partnership with Korean Air, are considered key factors in the control structure. Delta, which holds about 14–15%, has been viewed as a friendly shareholder. One scenario discussed was that Hoban could acquire KDB’s stake if it is eventually sold, narrowing the gap between the two sides.

Hoban asked the Fair Trade Commission to review the business combination, seeking confirmation of whether it had become the largest shareholder. In response, Cho’s side announced plans to purchase an additional stake worth about 37 billion won to retain its position as the largest shareholder. The method could vary, from open-market purchases to a block deal involving a friendly shareholder’s stake. The dispute has expanded beyond the shareholding contest itself into a battle over the symbolic status of largest shareholder.

AMD reported revenue of $13.4 billion and adjusted earnings per share above market expectations. Its revenue guidance for the next quarter also exceeded forecasts, with the company projecting growth of 27% from the previous quarter. Data center revenue topped $8.5 billion, a record, rising 97% year over year and 27% quarter over quarter. The data center business accounted for about 63% of total revenue.

AMD said demand from data center customers exceeded its supply capacity and that it was discussing long-term supply agreements with customers. The company also said it was confirming customers’ plans for securing sites and power for data center construction before supplying products. The PC and gaming businesses were affected by slowing PC demand, but growth in the data center business was offsetting that pressure.

Reports said Samsung Electronics would produce HBM base dies for AMD and Nvidia at its Taylor, Texas, fab. If the reports are accurate, expectations could grow that AMD will expand its use of Samsung Foundry as TSMC’s production capacity remains tight. However, the reported order has appeared in some media outlets and should not be treated as a confirmed contract.

Super Micro Computer confirmed its previously released preliminary results in its formal earnings announcement. Revenue, adjusted gross margin, adjusted earnings per share and guidance all exceeded market expectations, and the company raised its full-year revenue outlook, citing strong demand for AI infrastructure. Quarterly revenue was reported to have grown about fourfold from a year earlier and around 80% from the previous quarter.

The company said securing sites, power and buildings was as important as GPUs for data center construction, and that it had access to the necessary resources. It also noted that demand for CPU-based servers was increasing as AI use expanded from training to inference. A higher share of large AI projects weighed on the overall gross margin, but the company said profitability across customer groups remained reasonable.