A survey of 120 financial investment professionals reveals overwhelming optimism about the semiconductor and AI rally, with 95% expressing confidence in the sector's outlook over the next year despite recent market volatility. The experts attribute the recent stock market turbulence to supply-side distortions and short-term overheating rather than fundamental deterioration, with 67.5% citing leverage ETF vulnerabilities (37.5%) and profit-taking after rapid gains (30%) as primary causes. Only 16.7% pointed to concerns about AI profitability as a factor. The survey findings counter growing investor anxiety that the AI and semiconductor boom may be a bubble, with professionals characterizing the current period as temporary growing pains driven by macroeconomic headwinds and speculative trading imbalances.
Survey Attributes Volatility to Supply Distortions and Overheating
The survey identified supply-side distortions as the leading cause of recent market instability, with 37.5% of respondents selecting vulnerabilities in single-stock leverage ETFs as the primary factor. An additional 30% attributed volatility to short-term overheating and profit-taking, bringing the combined total to 67.5%. Only 16.7% cited skepticism about AI profitability as a contributing factor.
Kim Yong-gu, head of the investment strategy team at Yuanta Securities, stated that the recent market correction stems not from corporate earnings damage but from concerns about the sustainability of the AI infrastructure investment supercycle triggered by interest rate pressures. Kim Yeon-su, head of the domestic equity management division at VI Asset Management, emphasized that a shift toward expectations of rate cuts through downward stabilization of inflation indicators is the top priority, describing it as the factor that releases the biggest constraint suppressing growth stock valuations.
Park Jin-ho, head of the equity division at NH-Amundi Asset Management, characterized the recent market conditions as a healthy correction phase to resolve short-term overheating, but stressed that reducing concentration in individual investor supply through measures such as curtailing single-stock 2x leverage trading is essential for market stabilization. Park noted that deleveraging to clear excessively accumulated speculative supply must be completed before a bottom can be confirmed.
Experts Identify Macro Stabilization as Market Recovery Prerequisite
Survey respondents identified resolution of macroeconomic headwinds represented by high inflation, high interest rates, and high oil prices as the foremost condition for market stabilization. Kim Yong-gu stated that valuation normalization will occur only when oil prices and inflation calm, concerns about additional Federal Reserve tightening dissipate, and market interest rates decline.
Kim Seok-hwan, chief research fellow at Mirae Asset Securities, stated that investor sentiment will recover only when global hyperscalers' earnings announcements numerically confirm that their AI infrastructure investment plans are maintained without reduction. The survey results indicate that market confidence depends on sustained capital commitment from major technology companies rather than speculative positioning.
Physical AI and Autonomous Driving Emerge as Next Leading Sectors
Regarding the semiconductor sector outlook over the next year, 68.3% of experts selected cautious optimism and 26.7% selected very optimistic, totaling 95% expressing confidence. In the ranking of core leading sectors expected to drive the market after the volatility period (multiple responses allowed), semiconductors retained first place with 72.5%.
A notable finding is that Physical AI, autonomous driving, and robotics ranked second with 46.7%, surpassing secondary batteries (16.7%) and defense/aerospace (14.2%). Regarding the concentration phenomenon in existing leading stocks, 55.8% of experts responded that it will ease in the future, forecasting an expansion in the base of leading stocks. The analysis suggests that leadership will broaden beyond server memory for AI computation to on-device AI combining with real-life devices and Physical AI that moves autonomously.
Lee Kyung-joon, head of the ETF management division at Kiwoom Investment Asset Management, stated that the AI industry is evolving from the initial infrastructure construction stage requiring massive capital to the application service stage applied to real life. Lee forecasted that the concentration phenomenon where money flowed only to a few stocks will ease, and rotation will continue to companies proving solid profit structures based on AI.
Samsung Electronics and SK Hynix Lead Stock Picks for AI Era
Within the expanding AI ecosystem, Samsung Electronics and SK Hynix received overwhelming support as the most promising companies to break through the roller-coaster market conditions. The rationale centers on their possession of portfolios and technological capabilities to respond most completely to the coming Physical AI era, beyond simple price rebounds.
Choi Hyun-jae, head of the research center at Yuanta Securities, stated that Samsung Electronics has a business structure diversified into memory, foundry, and finished products such as smartphones and home appliances, giving it excellent profit defense capability to absorb specific cycle fluctuations. Choi evaluated Samsung as the only company capable of receiving AI demand from multiple angles, including HBM and server DRAM as well as on-device AI devices. Yoon Je-min, CEO of Integral Investment Advisory, emphasized that Samsung Electronics is the company that will benefit most from bottleneck phenomena occurring during AI industry development.
Park Jin-ho stated that large-cap semiconductor stocks based on HBM competitiveness recovery and expanded general memory share will lead market stabilization.
Hyundai Motor Group and power equipment-related stocks received attention as next-generation leaders in Physical AI. One asset management industry official stated that Hyundai Motor holds definite future growth options in robotics and autonomous driving simultaneously, based on cash generation capability from its core business, evaluating it as the traditional industry company that will stand out most when the Physical AI era arrives.
Positive evaluations of the power equipment industry, an essential material for AI infrastructure expansion, continued. Yoon Won-tae, research fellow at SK Securities Research Center, stated that expansion of demand for power equipment such as transformers is inevitable during AI data center infrastructure investment, naming Hyosung Heavy Industries, HD Hyundai Electric, and LS Electric as promising stocks. Kim Seok-hwan also analyzed that major domestic power equipment companies will enjoy supercycle benefits as massive power consumption of AI data centers combines with demand for aging power grid replacement centered in North America.
FAQ
What did the survey of 120 investment professionals reveal about semiconductor outlook?
The survey showed that 95% of financial investment experts are optimistic about the semiconductor sector over the next year, with 68.3% expressing cautious optimism and 26.7% very optimistic. Only 16.7% cited concerns about AI profitability as a factor in recent volatility, while 67.5% attributed market turbulence to supply distortions and short-term overheating rather than fundamental deterioration.
Why do experts believe Physical AI will become a leading sector?
In the survey ranking of sectors expected to lead the market after recent volatility, Physical AI, autonomous driving, and robotics ranked second with 46.7% support, surpassing secondary batteries and defense stocks. Experts stated that AI is evolving from infrastructure construction to real-life application stages, with leadership broadening from server memory to on-device AI and autonomous systems that move independently.
Which companies did experts identify as top picks for the AI era?
Samsung Electronics and SK Hynix received overwhelming support as the most promising semiconductor stocks, with experts citing their complete portfolios covering HBM, server DRAM, and on-device AI devices. Hyundai Motor Group was highlighted as a Physical AI beneficiary combining robotics and autonomous driving capabilities, while power equipment companies including Hyosung Heavy Industries, HD Hyundai Electric, and LS Electric were named as supercycle beneficiaries from AI data center infrastructure expansion.
