Even Amid Record Highs for Samsung and SK hynix, Europe's Largest Asset Manager Says "No Bubble"

"The Key Variable Is the Fed...
Dependent on the U.S. AI Investment Cycle"

Recently, as share prices of Samsung Electronics and SK hynix have surged, debates over an “Artificial Intelligence (AI) bubble” have intensified. However, global asset management firms have analyzed that the market is not yet in an overheated phase.

According to Bloomberg on June 5 (local time), Alessia Berardi, Head of Emerging Market Strategy at Amundi, Europe’s largest asset manager, stated in an interview, “We do not see a bubble,” adding, “While expectations for the earnings of companies like Samsung Electronics and SK hynix are very high, considering the anticipated profit levels, current share prices may still be reasonable.”

She explained that although technology stocks in South Korea and Taiwan have repeatedly hit record highs recently, it is not yet time to worry that the rally is over simply because prices have risen sharply. The rally in technology stocks has driven emerging market stock indices up by nearly 25% this year.

Berardi projected that approximately USD 5 trillion (about 7,714 trillion won) will be invested in building out AI infrastructure by 2030, diagnosing that there is further upside potential for companies in the semiconductor, server, and hardware supply chain sectors.

However, Amundi emphasized that the future direction of Asian technology stocks ultimately depends on the U.S. AI investment cycle. Currently, major U.S. tech giants—including Microsoft, Amazon, Meta, and Alphabet—are pouring vast sums into AI data centers and semiconductor infrastructure, creating a structure in which Samsung Electronics, SK hynix, and TSMC are among the main beneficiaries.

However, as international oil prices have resumed an upward trend due to geopolitical risks in the Middle East, such as the recent war involving Iran, inflationary pressures have increased, and there is now a growing view that the U.S. Federal Reserve’s next move will be to raise interest rates. If government bond yields rise, companies’ financing costs will increase and the benchmark for returns on large-scale AI-related capital investments will also rise, potentially prompting big tech firms to slow their investment pace.

Berardi stated, “The outlook for (Asian technology stocks) still depends heavily on the U.S. investment cycle,” adding, “If market expectations for the Federal Reserve (Fed) change, it could ultimately affect Asian tech stock trading as well.” However, she also noted, “Several emerging markets, including China, still have policy room to respond (despite the turmoil caused by the Iran conflict and high oil prices),” and added, “The trend of narrowing the gap between emerging markets (EM) and developed markets (DM) may continue.”

This content was produced with the assistance of AI translation services.