Korean Investors Flock to Semiconductor Stocks Amid AI Growth Expectations
Amidst a revolutionary movement in China's AI sector marked by the development of 'DeepSeek,' global semiconductor markets are being significantly impacted. Korean investors have been extensively purchasing high-risk semiconductor stocks such as Nvidia and Direxion Daily Semiconductor Bull 3X ETF. The Direxion ETF, which amplifies the semiconductor index threefold, has seen increased demand driven by expectations of rising AI chip needs.
Despite concerns over excessive investment in AI hardware and the advent of DeepSeek causing a temporary dip in semiconductor stock prices, investors remain optimistic about the potential for growth driven by expansion in the AI ecosystem centered on GPUs. Over the past week, net purchases by domestic investors of these stocks amounted to a staggering $730 million, fueled by expectations of a booming AI chip demand.
In the local market, investor deposits are holding at the 54 trillion won level, supporting strong investor sentiment. Notably, margin trading balances have increased by 1.005 trillion won from the previous month to reach 16.7076 trillion won, reflecting the ongoing trend of 'bittoo' or debt-based investing. This underscores the strong preference for high-risk investments among domestic investors.
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