"Broke the Piggy Bank... Salaries Just Aren't Enough": The Stocks Individual Investors Are Rushing to Buy Worldwide

Young Investors Worldwide Scale Up Amid AI Frenzy
Calls for Caution Amid High Volatility
Experts Warn: "Be Mindful of Volatility"

The recent boom in artificial intelligence (AI) has driven technology stocks sharply higher, attracting a surge of individual investors in their 20s and 30s into equity markets worldwide. While enthusiasm continues as investors expect high returns, the increasing volatility of tech stocks has also led to growing warnings about investment risks.

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On July 21, local time, the BBC reported that while technology stocks leading the AI boom are fueling investment fervor among young people across various countries, some experts caution that expectations surrounding AI may be overly reflected in stock prices, emphasizing the need for a careful approach.

Michelle Huyin, 26, who works in sales at an information technology (IT) company in Australia, is investing her savings in the stock market. She said, "Times have changed and investing is no longer a choice, but a necessity," adding, "With purchasing power continually declining, investing is the only way to overcome this situation."

Thanks to the strong performance of tech stocks this year, her investment returns have increased significantly. Having allocated over one-third of her assets to tech stocks, she reported that, as of mid-July, her investment returns in this sector were up about 50% since the beginning of the year, translating to an unrealized gain of 31,000 Australian dollars (approximately 3.2 million won). Following a correction in tech stocks, her current profits have decreased to about 22,000 Australian dollars (approximately 2.3 million won), but she maintains a long-term investment perspective.

Nasdaq up 10%, Nikkei up 20%

The tech-heavy Nasdaq Index in the United States rose by approximately 10% this year, while Japan's Nikkei 225 Index climbed by more than 20%. In contrast, individual tech stocks have repeatedly recorded large gains and losses, reflecting high volatility. In Korea, this volatility has been even greater. The KOSPI Index—inclusive of SK hynix and Samsung Electronics—has soared by more than 50% since January this year, supported by strong buying from retail investors, often referred to as "ants."

Retail investor Lee Woochan, 30, remarked, "Nowadays, it's rare to find anyone who isn't investing," adding, "Even my mother, who never cared about stocks before, has started paying attention to investments."

However, after the KOSPI surpassed the 9,000-point mark and set a new all-time high in June, it plummeted to around the 6,500-point level. Since the beginning of the year, circuit breakers—which are triggered when the market falls by more than 8% in a single day—have already been activated seven times. The BBC also reported, "As sharp declines in share prices raised concerns about losses among individuals investing on credit, the Korean government moved to curb the use of margin loans for investment."

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"Should Have Invested More"—FOMO as Well

Jacqueline Choi, 28, originally from Korea, said she regrets not investing more before the KOSPI rally. Choi also expressed her disappointment about having to sell her shares in Hyundai Motor Company and Samsung Electronics due to pressing financial needs. "Sometimes I wonder why I didn’t invest all my money in SK hynix or Samsung Electronics," she said.

Earlier this month, SK hynix went public on the New York Stock Exchange, raising 26.5 billion U.S. dollars (about 40 trillion won), marking the largest listing ever by a foreign company in the U.S. Choi said many of her friends have also invested thousands of dollars in the stock market, adding, "Now that I've realized investing can generate much greater returns than a regular job, I feel like I should invest even more."

In Singapore, 24-year-old business student Shan Lim has invested approximately three-quarters of her savings in tech stocks. In October last year, Lim invested 23,000 Singapore dollars (2.6 million won) in Intel and Micron Technology. As of now, the value of her holdings has grown to about 100,000 Singapore dollars (11.5 million won). She said, "It feels like I'm one step closer to retirement. While I can take risks now because I’m young, I won’t invest this way when I am older."

Ayushi Dev, a 23-year-old university student in Singapore, has kept her holdings in tech stocks at roughly 30% of her overall assets. Dev said that in June, one of her memory chip investments dropped more than 10% in a single day but noted, "I try to pick stocks based on solid information rather than getting distracted by noise from investment communities."

Dev revealed that she also experienced FOMO (fear of missing out) when she was unable to invest in SpaceX—Elon Musk's aerospace and AI company—when it went public in June.

Yet SpaceX shares, which at one point reached as high as 225 dollars, have recently fallen below their IPO price of 135 dollars. Some experts are raising doubts about the company's profitability.

Calls for Prudence Amid Excessive AI Hype

With the explosive rally in tech stocks driven by the AI boom—drawing in swathes of individual investors in their 20s and 30s worldwide—some experts are warning that the market may be excessively reflecting expectations about AI.

Glenn Tan of advisory firm Providend analyzed, "Social networking services and marketing targeting inexperienced investors are further fueling the investment craze," adding, "Even ordinary retail investors are getting swept up in this environment."

The high volatility of tech stocks also presents the greatest investment risk. While governments and corporations worldwide are pouring immense capital into AI development, there is still debate as to whether the actual profitability justifies the scale of investment.

Lale Akoner, an analyst at investment platform eToro, pointed out that investors often focus only on rosy outlooks or eye-catching companies, rather than a company's true profitability. Akoner stressed, "Although individual investors tend to see share price declines as buying opportunities, they must recognize that significant losses can occur during a reassessment of company values."

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