South Korea’s stock market has surged about 200% year-on-year, powered by retail investors chasing an artificial intelligence-fueled chip rally. But with extreme volatility and a heavy reliance on two
Well, FIIs have been dumping Korean stocks for sometime now. It's clearly the domestic retail investors who are responsible for the screaming highs of KOSPI and leveraged ETFs are a clear catalyst for that. Would be interesting to see how this story plays out over the next few months and into 2027(if it can go that far lol).
2 of 3 of Memory manufacturers are in Korea. DDR5 is extremely hard to produce. And there is a world shortage that will continue for at least a year from now. So I wouldn't frame it as a bubble.
Samsung and SK Hynix like MU and SNDK deserve this growth. They are still undervalued compared to the real bubble stocks like Tesla, SpaceX or others. The risk here is the use of Leverage led ETFs. Which are a ready to eat Options market made easy for everyday retail investors.
Korean stock market has been skyrocketed in a year yes, but in terms of price to earning ratio, it's still THE MOST underrated compared to any countries around the world. Both Samsung Electronics and Hynix have only P/E ratios of 5.5-7.2, which hit actually their historical low at the moment. The 3rd player in the semiconductor market following Samsung and Hynix is Micron based in US, and it has P/E ratio over 8.
If Korean semiconductors are bubble with that profit then US has the same problem. Also with that ridiculous value that US markets give to Tesla and space x I that is the real bubble here
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USA: dumb money
I think I like to be called an ant as well