[MarketING] Stock Market Stirred by ChatGPT Craze

KOSPI Rises Two Consecutive Days, Surpasses 2480
Thematic Market Leadership... AI-Related Stocks Highlighted

[Image source=Yonhap News]

[Asia Economy Reporter Song Hwajeong] Amid a sector-driven market, AI-related stocks are showing the most prominent strength fueled by the 'ChatGPT' craze. As the influence of the AI theme expands in global stock markets, the strong momentum is spreading across related value chains.

KOSPI Reclaims 2480 Level

On the 8th, the KOSPI closed at 2483.64, up 31.93 points (1.30%) from the previous day. The KOSDAQ ended the session at 779.98, rising 7.19 points (0.93%). The KOSPI rose for two consecutive days, recovering the 2480 level and approaching the previous month's high (2484.02), while the KOSDAQ was on the verge of reclaiming the 780 level.

Kim Seokhwan, a researcher at Mirae Asset Securities, analyzed, "The KOSPI showed a rise of over 1% due to strength in semiconductors and large internet stocks," adding, "As interest in ChatGPT continues to grow, expectations for NAVER's AI-based projects and the potential increase in demand for AI semiconductors have led to gains in Samsung Electronics and SK Hynix." Samsung Electronics and SK Hynix rose 1.94% and 4.52%, respectively, on the day.

Amid the ongoing sector-driven market, AI-related stocks are leading the market trend with notable strength driven by the ChatGPT craze. NAVER rose 5.01% on the day, reaching the 230,000 KRW level for the first time since September last year. Its market capitalization ranking also rose one notch to 7th, surpassing Hyundai Motor. This is interpreted as the stock being lifted by expectations for 'SearchGPT,' which is anticipated to be a rival to ChatGPT. NAVER announced on the 3rd during its earnings report that it plans to launch SearchGPT within the first half of the year. Ryu Eunae, a researcher at KB Securities, said, "Since overseas companies' English-based models may lose accuracy in the process of translating into Korean, NAVER's Korean-based SearchGPT is expected to offer services specialized for the Korean market."

Isu Petasys surged 10.59%, and Flitto closed up 3.19%. Baek Gilhyun, a researcher at Yuanta Securities, said about Isu Petasys, "The increase in ChatGPT usage is triggering expanded demand for AI-based cloud services, which will positively impact Isu Petasys's mid- to long-term growth potential." Flitto sells language data collected through its platform and also operates platform services such as prosperous data construction services. Oh Hyunjin, a researcher at Kiwoom Securities, forecasted, "With the rise of ChatGPT, the AI chatbot business is expected to expand, increasing demand for Flitto's conversational data."

AI Theme Expands Its Influence

As the influence of the AI theme expands in global markets, investors' interest in AI-related themes is expected to rise further.

AI-related stocks also showed strength in the U.S. stock market the previous day. Microsoft (MS) rose more than 4% after announcing new AI-based updates for its Bing search engine and Edge browser. Google, which unveiled 'Bard' as an AI engine to rival ChatGPT, also rose over 4%. Baidu's stock surged more than 12% after announcing plans to launch the conversational chatbot AI 'Ernie Bot' next month.

Researcher Kim said, "The global AI craze triggered by OpenAI's ChatGPT has heated up the stock market since the beginning of the year," adding, "With major tech companies like MS, Google, and Baidu competing to release innovative AI technologies this year, investors' interest in AI-related themes will increase."

The theme-driven market led by AI and others is expected to continue. Choi Yujun, a researcher at Shinhan Investment Corp., said, "With ChatGPT leading the way, the influence of the AI theme on global stock markets is expanding, and software and related value chains are showing strength," adding, "Alongside AI, themes such as Apple Pay, security tokens, extended reality (XR), and space are emerging as leading themes, and as their application areas expand, the theme-driven market will continue."