Gigi Luk, founder of GGL Capital Investment Group, stated that the excessive flow of capital into artificial intelligence assets is heightening the risks faced by investors. "A risk we are observing now is the potential excess liquidity in the AI sector," Luk remarked in an interview. "We are aware that the current pipeline for IPOs is substantial, with supply continuously increasing. Historical experience suggests that this often coincides with market peaks." Demand for AI and data centers has driven up the stock prices of memory chip companies, pushing the market capitalization of SK Hynix and Micron to $1 trillion for the first time. Citing data, Luk noted that semiconductors now account for a record 10% of hedge fund allocations and added that leverage in this area is also high. She pointed out that "the gap between winners and losers is structurally widening," and this divergence creates opportunities for selective investors who can identify companies with sustainable business models versus those driven merely by hype.
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