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 emerged as a major beneficiary of the global artificial intelligence (AI) boom, with U.S. tech giants investing billions in data centers and computing infrastructure. This has fueled demand for memory chips from Korean companies Samsung Electronics and SK hynix. While chipmakers are reaping the rewards, the sustainability of this boom is now under scrutiny.
The conference of global market participants at the KB Jefferies Korea Conference at the Fairmont Ambassador Seoul highlighted the increasing fragility of the AI-driven growth in Korea. The future of this boom now hinges on the willingness of capital markets to finance further AI expenditures, even as other capital-intensive industries vie for limited funding.
Geopolitical shifts also pose a threat, potentially bolstering the capabilities of Chinese competitors. These risks are becoming a more significant factor for investors, with Jefferies' global head of equity strategy Christopher Wood remarking that he has never seen such a chart in any major market.
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.
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- Korea still riding AI investment supercycle, but risks are building koreatimes.co.kr
