HSBC upgraded Korea's stock rating from “neutral” to “increased holdings,” believing that excessive leverage has been eliminated, and the prospects for corporate profit growth are still strong. Although market volatility is still high, it has declined from a high level, and capital inflows into individual leveraged ETFs have also slowed, but demand for local stocks is still strong. Earnings are expected to increase by 300% or more in 2026 and another 30% in 2027. The key is whether rising profit expectations will start to cool down as more memory supplies arrive, but if US data center spending remains strong, then the favorable factors are not limited to the memory sector, but can also be extended to other fields such as power equipment, energy storage, and engineering.

HSBC upgraded Korea's stock rating from “neutral” to “increased holdings,” believing that excessive leverage has been eliminated, and the prospects for corporate profit growth are still strong. Although market volatility is still high, it has declined from a high level, and capital inflows into individual leveraged ETFs have also slowed, but demand for local stocks is still strong. Earnings are expected to increase by 300% or more in 2026 and another 30% in 2027. The key is whether rising profit expectations will start to cool down as more memory supplies arrive, but if US data center spending remains strong, then the favorable factors are not limited to the memory sector, but can also be extended to other fields such as power equipment, energy storage, and engineering.