The AI Chip Bubble: Why South Korea & Taiwan Are In the Danger Zone | Michael Fritzell | Asian Century Stocks

South Korean memory chip stocks, specifically SK Hynix and Samsung Electronics, exhibit classic bubble characteristics driven by extreme profit projections and speculative retail fervor. While the AI-driven rally has pushed indices to record highs, the looming threat of Chinese supply expansion by 2027 suggests a coming cyclical turn. Beyond the tech sector, corporate governance reforms—modeled after Japan’s successful capital allocation initiatives—are creating significant value opportunities in Korean small-cap stocks. Conversely, China’s equity market remains hampered by property sector instability and unpredictable regulatory crackdowns, diminishing its appeal for foreign investors. Investors seeking long-term growth should pivot toward bottom-up stock picking in undervalued sectors across Korea and Southeast Asia, such as consumer goods and infrastructure, rather than relying on broad emerging market indices that are currently dominated by volatile, high-priced tech companies.