In the AI battle, South Koreans blinked first.
South Korea’s KOSPI plunged 3.52% at Thursday’s close, ending at 5,533.77 points and setting its lowest closing record since April.
The two semiconductor giants led the sell-off: Samsung Electronics fell 4.03%, while SK Hynix dropped 5.49%.
A total of 706 stocks fell, versus 174 that rose, and institutions were net sellers to the tune of 46.3 billion won for the day.
Ironically, U.S. stocks had just rebounded the night before on SpaceX’s earnings: the Dow rose 0.69% and the Nasdaq gained 1.05%. After reporting earnings, Meta doubled down on its AI bets.
Daishin Securities analyst Lee Kyung-min summed it up in one sentence: "Meta and Tesla both beat earnings expectations, but that hasn’t eased the market’s doubts about the returns on massive AI investments."
I think this is the "second question" about AI capex:
The first is, "Can they afford to keep spending?" Earnings beats have already answered that.
The second is, "Can they make the money back?" So far, no one dares to say for sure.
SK Hynix’s buyback plan expiring—and the loss of one source of demand support—was just the finger that broke the pane of glass.
The crypto market can’t escape the same dark cloud.
$BTC has recently been battered by fears over AI capex, oil prices, and next week’s Fed meeting. Investors seeking safety are only willing to shelter in Bitcoin itself, not altcoins—BTC dominance has surged to 60%.
Interestingly, South Korean retail investors are doing the opposite: while institutions are heading for the exits, individual investors have been net buyers, scooping up 38.1 billion won worth of stocks.
South Korean retail investors are already among the most active groups in the global crypto market, and often the money moving between stocks and crypto comes from the same people.
The macro engine of earnings season is still running: Meta and Tesla have reported, but SK Hynix and Samsung’s Q3 earnings (October 28/29) will be the real day of reckoning.
If HBM orders fail to bring a new story, KOSPI won’t be the only market in the AI chain whose valuations need to be repriced.
What do you think: Are doubts about the returns on AI investments the start of this tech stock correction, or should we buy the dip once the emotions have run their course?
#KOSPISinks3.52%ToLowestCloseSinceApril
#财报季 #AI
$BTC $ETH
The above does not constitute investment advice. DYOR; trading involves risk.
South Korea’s KOSPI plunged 3.52% at Thursday’s close, ending at 5,533.77 points and setting its lowest closing record since April.
The two semiconductor giants led the sell-off: Samsung Electronics fell 4.03%, while SK Hynix dropped 5.49%.
A total of 706 stocks fell, versus 174 that rose, and institutions were net sellers to the tune of 46.3 billion won for the day.
Ironically, U.S. stocks had just rebounded the night before on SpaceX’s earnings: the Dow rose 0.69% and the Nasdaq gained 1.05%. After reporting earnings, Meta doubled down on its AI bets.
Daishin Securities analyst Lee Kyung-min summed it up in one sentence: "Meta and Tesla both beat earnings expectations, but that hasn’t eased the market’s doubts about the returns on massive AI investments."
I think this is the "second question" about AI capex:
The first is, "Can they afford to keep spending?" Earnings beats have already answered that.
The second is, "Can they make the money back?" So far, no one dares to say for sure.
SK Hynix’s buyback plan expiring—and the loss of one source of demand support—was just the finger that broke the pane of glass.
The crypto market can’t escape the same dark cloud.
$BTC has recently been battered by fears over AI capex, oil prices, and next week’s Fed meeting. Investors seeking safety are only willing to shelter in Bitcoin itself, not altcoins—BTC dominance has surged to 60%.
Interestingly, South Korean retail investors are doing the opposite: while institutions are heading for the exits, individual investors have been net buyers, scooping up 38.1 billion won worth of stocks.
South Korean retail investors are already among the most active groups in the global crypto market, and often the money moving between stocks and crypto comes from the same people.
The macro engine of earnings season is still running: Meta and Tesla have reported, but SK Hynix and Samsung’s Q3 earnings (October 28/29) will be the real day of reckoning.
If HBM orders fail to bring a new story, KOSPI won’t be the only market in the AI chain whose valuations need to be repriced.
What do you think: Are doubts about the returns on AI investments the start of this tech stock correction, or should we buy the dip once the emotions have run their course?
#KOSPISinks3.52%ToLowestCloseSinceApril
#财报季 #AI
$BTC $ETH
The above does not constitute investment advice. DYOR; trading involves risk.