The AI trade isn’t done eating yet
If you thought the AI chip rally had already sprinted across the finish line, KB Financial Group is basically waving at you from the starting blocks. Peter Kim, the firm’s global investment strategist, says South Korea’s semiconductor and memory heavyweights still have plenty of runway left — and he thinks we’re “not even halfway through” the move.
Why this matters
This is not just a cheerleading session for two stocks. Samsung and SK Hynix sit at the center of the global memory market, which means when AI demand gets frothy, these names can end up looking like the best-dressed guests at the party. Investors care because the valuation setup still looks supportive, and the fundamentals — at least in KB Financial’s telling — haven’t run out of steam yet.
The stuff that could trip it up
Of course, no rally gets to enjoy the good vibes forever. Kim also flagged a couple of buzzkills:
- foreign institutional investors have been net sellers of the KOSPI,
- labor unions at the two companies could stir up operational headaches,
- and the AI trade itself is so crowded it could get jumpy if sentiment shifts.
That’s the usual market magic trick: the story is bullish until everyone notices the same story. Then the question becomes whether the winners can keep winning after the crowd shows up.
Big picture
For now, KB Financial’s view is simple: the Korean chip trade still has room to run, even if the path is going to look a little like a roller coaster with extra loops.