Semiconductor Stocks Still Undervalued, Korea Investment Says as AI Spending Expands

Korea Investment & Securities said on the 11th that a holding strategy for semiconductor stocks remains valid as investment in artificial intelligence continues to expand despite concerns over high inflation. Recent gains in chip shares have raised worries about peak valuations and prompted some investors to consider taking profits, but the brokerage said prices still look undervalued compared with earnings growth. It also cited signs that market concerns over inflation are easing as a positive backdrop for sector sentiment. The analysis suggests investors should not rush to sell solely because of short-term gains, but should weigh continued AI investment and the potential for improving profits. Source: mk.co.kr