July 23 Market Report: Indices Sideways as Semiconductor Giants Like Micron and AMD Rally

Defensive Rise Led by Semiconductor Sector

On July 22, 2026, global stock markets moved sideways without finding clear direction. While surging international oil prices and investor wait-and-see sentiment ahead of Big Tech earnings weighed on the market, causing the three major U.S. indices to post slight declines, optimism regarding AI semiconductor demand drove a rally in major semiconductor-related stocks. Key players such as Micron, Intel, AMD, Applied Materials, and TSMC rose by around 0.1%, supporting the market's lower bound. Micron closed up 0.12% from the previous day at 970.82 won, while Intel and AMD rose 0.09% and 0.08%, respectively. This trend is attributed to a macro judgment that AI infrastructure investment will continue, rather than being driven by specific company news.

Value and Growth Stocks Recognized Amidst Earnings Absence

The day's market characteristics were revealed not by price changes but by the divergence between underlying corporate value and supply/demand dynamics. Semiconductor equipment makers Lam Research and ASML Holdings rose 0.05% and 0.04%, respectively, confirming a trend of institutional buying. Although the increases were marginal, their defensive performance suggests that semiconductor process miniaturization and facility expansion are becoming visible. However, extreme divergence is evident in EPS growth rates. While Intel and AMD recorded explosive leading indicators of 9865.5% and 16435.6%, respectively, Meta Platforms and Tesla showed deep declines of -256.0% and -4709.0%. This aligns with market sentiment wary of Tesla's excessively high PER of 344.5x, implying that high-priced tech stocks not backed by earnings growth are undergoing a correction. Alphabet closed at 347.15 won, down 0.01% ahead of earnings, yet maintains valuation appeal with a low PER of 26.5x.

Index Sideways Movement and Deepening Polarization

Amidst the overall sluggish market flow, funds tended to flock to safe assets and value stocks. Berkshire Hathaway and Exxon Mobil reclaimed market capitalizations of 0.63 trillion won and 0.63 trillion won, respectively, demonstrating the strength of traditional defensive sectors. With Big Tech firms, including Google parent Alphabet, facing a moment where they must prove the profitability of their AI businesses, investment funds are pivoting toward companies generating tangible profits rather than short-term momentum. The domestic market is not immune to this global slowdown. The KOSPI briefly touched 7,000 points before closing at 6,797, showing an intraday pattern of strength followed by weakness; this is attributed to institutions selling to realize profits. The fact that low-PBR companies still account for 73% of the domestic market—excluding the semiconductor sector—remains a structural discount factor for global investors.

Investment Strategy for the Formal Earnings Season

The future market direction is expected to be heavily influenced by Big Tech earnings cards. In particular, AI-related ROI indicators, starting with Alphabet, will be a key factor increasing Nasdaq volatility. Unlike the robust infrastructure demand in the semiconductor sector, sectors sensitive to the real economy, such as autonomous driving and electric vehicles, are unlikely to avoid the direct impact of sluggish consumer sentiment. Therefore, investors must now screen for companies that generate actual cash flows to support explosive EPS growth. Memory and foundry-related stocks like Intel and Micron, which have significant valuation gaps, present valid opportunities for a buy-on-dips strategy utilizing short-term volatility. Conversely, in the absence of influential macro indicators or clear momentum, risk management preparing for expanded market volatility is essential.