Semiconductors will end like the dot-com bubble? The real reason you shouldn't fall for the fear of a bear market | Sung Sang-hyun, Deputy Head of Investment Strategy Office, Korea Federation of SMEs

Summary

Deputy Head Sung Sang-hyun discusses the recent sharp sell-off in Korean semiconductor stocks, arguing it is driven by temporary fears of big tech capex cuts rather than fundamental deterioration. He explains why hyper-scaler spending will continue due to contractual backlogs and US government strategy, implying semis will rebound. He also warns of rising volatility, advises against leverage, suggests holding cash, and favors commodities and equities over long-term bonds in the current inflation cycle.

• Korean semiconductor stocks fell sharply on fears that big tech AI capex will stop.
• Sung argues capex will continue, backed by RPO backlogs and US AI hegemony needs.
• He expects semiconductor rebound once fears ease, citing cheap valuations.
• Volatility will intensify; avoid leverage and maintain a cash cushion.
• Electric power equipment sector sold off but remains a key AI data center play.
• Long-term bonds are unattractive under sticky inflation and heavy spending.
• Commodities/energy preferred over bonds as real assets in the current cycle.
• Upcoming big tech earnings and Fed productivity work are critical signals.