Even with the semiconductor crash, AI is not over | Park Byung-chang, MP Partners CEO [Market Inside]

Summary

Park Byung-chang analyzes the sharp sell-off in Korean semiconductors driven by Meta's surplus compute cloud entry and OpenAI's cost‑efficient algorithm, but argues the AI growth cycle is not over. He highlights that the US market itself is not alarming, while Korea suffers from extreme concentration in Samsung Electronics and SK Hynix. He identifies new opportunities in MLCC/passive components, power infrastructure, defense/shipbuilding, and a rotation into financials and Kia as institutional active funds start to deploy.

• Korean semiconductor drop explained by Meta/Oracle news and US equipment sell-off, not a systemic market breakdown.
• AI fundamentals remain intact; the fear is a cyclical rotation rather than the end of the AI investment cycle.
• MLCC and passive component prices are surging globally, benefitting Samsung Electro‑Mechanics.
• Data center power shortages and Korea's mega project are reigniting demand for power equipment and transformers.
• Hanwha Ocean surged on news of a KDDX destroyer contract win, adding to defense/shipbuilding momentum.
• Active institutions are now buying KB Financial, Kia, and Shinhan Financial, which had been moving sideways.
• Extreme leverage in Samsung Electronics and SK Hynix via leveraged ETFs and margin debt raises volatility risks.