Quick Read
- South Korea’s KOSPI index reached a record high of 4,898.88 points, marking its 12th consecutive session of gains.
- Hyundai Motor’s stock surged over 13% to a record high, driven by its robotics and AI prospects, including a meeting with NVIDIA CEO Jensen Huang and a CES showcase of its Atlas robot.
- NVIDIA CEO Jensen Huang declared at CES 2026 that the ‘next will be the era of physical AI,’ sparking investor interest in industrial robotics.
- Other South Korean robot stocks like Doosan Robotics (up 20.24%), Yujin Robot (13.11%), and Hyulim Robot (15.22%) also hit 52-week highs.
- Chipmaking stocks, including Samsung Electronics and SK Hynix, contributed to the KOSPI’s rise, buoyed by strong AI chip demand and industry dealmaking.
South Korea’s benchmark KOSPI index soared to an unprecedented record high on Monday, marking its twelfth consecutive session of gains for 2026. This remarkable market surge was predominantly driven by a significant rally in Hyundai Motor, which saw its shares climb on the back of its ambitious advancements in robotics and artificial intelligence. The broader market also witnessed strong performances from specialized robotics companies and key chipmakers, all buoyed by growing investor enthusiasm for the transformative potential of ‘physical AI’ and the increasing demand for high-performance AI components.
Hyundai Motor Leads Market with Bold Robotics Vision
Hyundai Motor, South Korea’s automotive giant, emerged as the primary catalyst for the KOSPI’s record-breaking performance. The company’s stock surged over 13% to a new all-time high, extending its impressive run to 57.5% year-to-date in 2026, following a near 76% jump in 2025. This extraordinary growth reflects strong investor confidence in Hyundai’s strategic pivot towards advanced technologies, particularly in the realm of physical AI and robotics.
A pivotal moment for Hyundai’s valuation came after a high-profile meeting between its top leadership and NVIDIA Corporation CEO Jensen Huang, sparking widespread speculation about a potential collaboration that could redefine the future of intelligent mobility and industrial automation. Further solidifying its commitment, Hyundai recently showcased its advanced Atlas humanoid robot and unveiled a comprehensive ‘physical AI roadmap’ at the prestigious CES tradeshow. The company also announced the appointment of Milan Kovac, former head of Tesla Inc’s robotics program, as a key advisor, signaling a serious intent to accelerate its robotics development.
Investors are also keenly observing Hyundai’s plans to significantly increase investments in its U.S. operations. This strategic move is seen as potentially fostering a favorable relationship with the current U.S. administration, offering a degree of insulation against future trade tariff shocks and enhancing its competitive position in the global market.
‘Physical AI’ Fuels Broader Robotics Sector Rally
Beyond Hyundai, the burgeoning concept of ‘physical AI’ has ignited a significant rally across South Korea’s dedicated robotics sector. The notion that artificial intelligence is evolving beyond purely digital applications to actively operate in industrial settings such as factory floors, logistics centers, and manufacturing plants has captured investor imagination.
This sentiment was notably amplified by NVIDIA CEO Jensen Huang’s pronouncement at CES 2026, where he declared that ‘the next will be the era of ‘physical AI’.’ This vision suggests a future where AI-powered robots not only process information but also physically interact with and transform the real world, driving efficiency and innovation across various industries.
In early trading, specialized robot stocks experienced substantial gains. Doosan Robotics, a prominent player focusing on collaborative robots that work alongside humans in manufacturing, logistics, and service environments, saw its shares jump by over 20%. Similarly, on the KOSDAQ market, Yujin Robot, known for its autonomous mobile robots (AMRs) used in warehouse automation and smart factory solutions, climbed by 13.11%. Hyulim Robot, which specializes in industrial robots and automation systems, also recorded an impressive 15.22% increase. All three companies hit new 52-week highs intraday, underscoring the market’s bullish outlook on the practical applications of advanced robotics.
Chipmakers Bolster Market Amid Surging AI Demand
The KOSPI’s overall strength was further bolstered by robust performances from South Korea’s leading chipmaking stocks, which took positive cues from both strong earnings reports and significant dealmaking activity within the sector. Samsung Electronics Co Ltd saw a modest gain of 0.3%, while SK Hynix Inc added 1.5% to its share price. Both tech giants are poised to release their December quarter earnings in the coming days, with market participants anticipating strong results driven by sustained demand for memory and logic chips essential for AI applications.
These companies also benefited from positive developments elsewhere in the industry, including U.S. rival Micron Technology Inc’s acquisition of a manufacturing facility in Taiwan from Powerchip Semiconductor Manufacturing Corp for $1.8 billion. This deal signals ongoing expansion and investment in semiconductor production capabilities, which are critical for meeting the escalating demands of the AI revolution.
Furthermore, the broader chipmaking sector remained buoyant following last week’s positive earnings report from industry bellwether TSMC. The Taiwanese chip giant provided an optimistic outlook for AI-fueled chip demand throughout 2026, reinforcing the market’s conviction that the technological infrastructure underpinning AI and physical AI initiatives will continue to drive significant growth for semiconductor manufacturers.
The sustained rally in South Korea’s stock market, particularly the surge in Hyundai and specialized robotics firms, signifies a crucial shift in investor focus towards the tangible applications of artificial intelligence. It highlights a growing recognition that AI’s next frontier lies not just in digital algorithms and software, but in its physical embodiment through advanced robotics, fundamentally re-evaluating the growth potential of industries traditionally associated with manufacturing and automation.