Kospi's Recent Selloff Signals Reassessment of Future AI Growth

0252 GMT - Kospi's recent selloff reflects a broader reassessment of how much future AI growth is already reflected in equity valuations, says James Ooi, chief market strategist at Tiger Brokers, in a research note. The immediate catalyst was CXMT's progress on more efficient DRAM architecture, which renewed concerns over Chinese competition. However, the selloff of flash-memory maker Sandisk and hard-drive maker Seagate, despite the absence of any direct competitive threat from CXMT's technology, shows that investors are questioning the durability of the memory sector's exceptional profit margins, Ooi says. While supply shortages have driven memory prices higher, these favorable conditions may not last. "The next phase of AI investing could become more selective," he adds.