U.S. and Korean stocks plunge as AI bubble concerns reignite amid fears of interest rate hikes

As the sharp drop in semiconductor stocks that began in the U.S. stock market spread, the KOSPI fell sharply on the 8th, bringing renewed attention to concerns that AIrelated stocks are overvalued. While the possibility of an interest rate hike is weighing on the market, there is a growing trend of reevaluating how well the profitability of the AI industry is actually supported. The direct trigger for this correction was the earnings release from U.S. semiconductor company Broadcom. As Broadcom did not raise its future revenue outlook as much as expected, interpretations emerged that demand for AIrelated investment and expansion may not be as strong as thought, and U.S. semiconductor stocks fell by about 8% to 11%. In South Korea, semiconductor companies such as Nvidia, Samsung Electronics, and SK Hynix have driven the gains so far, so concerns about overheating in the market are also increasing. However, counterarguments have also been raised that, since memory supply shortages and HBM demand remain strong, it is unlikely that earnings will turn down anytime soon.