The sharp regulatory action by South Korean authorities has triggered fresh concerns over the overheated artificial intelligence (AI) semiconductor trade, prompting investors to reassess valuations after months of strong gains. While the move has weighed on Korean chipmakers, market experts believe the correction could prove healthy rather than signalling the end of the AI-driven rally.
Speaking to ET Now, Rahul Chadha from Shikhara Investment said the market had been increasingly concerned about leveraged and double-leveraged exchange-traded funds (ETFs), particularly those concentrated in Samsung and SK Hynix.
