Korea still riding AI investment supercycle, but risks are building
Korea has been one of the clearest winners of the global artificial intelligence (AI) boom, as U.S. hyperscalers pour hundreds of billions of dollars into data centers and computing infrastructure, driving demand for memory chips made by Samsung Electronics and SK hynix. Chipmakers are benefiting from those investments even without having to prove that AI itself can generate adequate returns. For…
Korea has been among the greatest beneficiaries of the worldwide artificial intelligence (AI) surge, as major U.S. tech companies pour billions of dollars into data centers and computing infrastructure. This investment has boosted demand for memory chips produced by Samsung Electronics and SK hynix. Chipmakers are reaping the benefits even without demonstrating that AI can generate sufficient returns.
For now, the AI boom continues to favor Korea. However, the underlying factors of this boom are becoming more unstable, according to global market participants who attended the KB Jefferies Korea Conference at the Fairmont Ambassador Seoul on Wednesday. The sustainability of this boom is now heavily reliant on capital markets funding escalating AI expenditures, while other capital-intensive industries vie for financial support.
Additionally, geopolitical shifts are potentially empowering Chinese competitors, thereby adding to the risks. These concerns are increasingly factored into investors' assessments. Global equity strategist Christopher Wood at Jefferies observed, "I haven't seen a chart like that in a major market before," referring to an unusual trend highlighted by the conference discussions.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Korea still riding AI investment supercycle, but risks are building koreatimes.co.kr
