Analysis: AI Semiconductor Investment Should Not Bet Solely on Memory Chips; Covering the Entire Industry Chain Can Diversify Risk

TechFlow News, August 6, according to Korean media NATE, the South Korean stock market adjustment in July was not due to a deterioration in the semiconductor industry, but rather profit-taking following a rapid rise in memory stocks previously. As of now, Samsung Electronics and SK Hynix stock prices have risen approximately 263% and 528% respectively over the past year, and the proportion of market capitalization of the two companies in the Korea Composite Index has also risen from 35% to 53%, leading to intensified market volatility.

South Korean financial giant Mirae Asset stated that with the expansion of AI infrastructure investment, semiconductor investment opportunities are spreading from the single memory sector to the entire AI supply chain. The AI semiconductor cycle continues to develop, and investors should not limit their positioning to memory chips, but should expand to the complete industrial chain including chip design, foundry, equipment, etc. Moreover, as the AI investment cycle is gradually expanding from the chip supply side to the cloud computing and application side, investment strategies covering the upstream and downstream of the industrial chain also help reduce the volatility risk of a single segment.