Lee Eun-taek

KOSPI is in a strong uptrend driven by AI semiconductors, solid GDP growth, increased foreign inflows, and a domestic economy that is not as weak as feared. Despite rapid gains, there is no imminent catalyst to reverse the trend, so investors should stay invested and not exit prematurely.

Recent concerns about Big Tech capex cuts and AI investment sustainability have caused volatility in semiconductor stocks. Drawing a parallel with Cisco in 1999, Lee argues that strong earnings can dispel such fears. Upcoming Q2 earnings from Korean semiconductor leaders like Samsung Electronics and SK hynix (with SK hynix reporting around July 23) are likely to confirm robust demand and buoyant guidance, driving share prices higher. The recent pullback aligns with a normal correction, not a trend reversal, making this an opportunity ahead of the earnings season.

Recent concerns about Big Tech capex cuts and AI investment sustainability have caused volatility in semiconductor stocks. Drawing a parallel with Cisco in 1999, Lee argues that strong earnings can dispel such fears. Upcoming Q2 earnings from Korean semiconductor leaders like Samsung Electronics and SK hynix (with SK hynix reporting around July 23) are likely to confirm robust demand and buoyant guidance, driving share prices higher. The recent pullback aligns with a normal correction, not a trend reversal, making this an opportunity ahead of the earnings season.

AI semiconductor investment is self-sustaining and cannot be stopped voluntarily because scaling laws continue to show improvement, competition among big tech is fierce, and companies see a clear path to AGI within 3-5 years. Any slowdown would only come from an external macro shock like recession or rate hikes, which are not imminent. Therefore the sector remains a compelling long.