NVIDIA, a global barometer of the artificial intelligence (AI) industry, has once again announced record-breaking results, temporarily alleviating the crisis sentiment in the AI and semiconductor sectors that had been dampened by bubble concerns. On the 20th, domestic stock markets also saw semiconductor companies' stock prices surge, with the KOSPI recovering the 4,000 mark.

As AI infrastructure investments surge, the demand for semiconductors, which has recently increased, is experiencing a shortage. There is growing optimism that the semiconductor supercycle driven by AI may continue for an extended period. However, some analysts caution that it is too early to be complacent, as variables and uncertainties remain regarding whether AI investments will continue at the current pace.

● “Memory semiconductor prices to double by next year”

On the 19th (local time), NVIDIA's third-quarter results (August to October) were announced, quelling not only AI bubble concerns but also some fears of a decline in semiconductor demand. NVIDIA revealed a 62% year-on-year increase in revenue to $57.01 billion, signaling an expansion in memory semiconductor demand. NVIDIA's strong performance is attributed to the global expansion of AI-related investments, sustaining demand for its latest graphics processing unit (GPU), 'Blackwell.'

Jensen Huang, CEO of NVIDIA, stated, “The AI ecosystem is rapidly expanding,” adding, “More foundation model developers and AI startups are emerging across more industries and countries.” Huang emphasized that “AI is performing every task everywhere simultaneously,” refuting the market's 'AI bubble' narrative and underscoring the robustness of the 'AI boom.'

With the rapid expansion of AI infrastructure investments, the demand for semiconductors, which serve as components, is also skyrocketing. According to the price comparison site 'Danawa,' the price of Samsung Electronics' DDR5-5600 16GB product was KRW 205,920 on this day, nearly tripling from KRW 69,246 on September 2, two months ago. An industry insider reported, “The competition among global big tech companies to secure semiconductors is so intense that prices are skyrocketing.”

Previously, SK Hynix announced that its high-bandwidth memory (HBM), DRAM, and NAND flash scheduled for production next year were sold out. Samsung Electronics also stated that most of its production volume for next year has already been contracted.

The industry anticipates that the upward trend in semiconductor prices due to the AI boom will continue for the time being. On this day, market research firm Counterpoint Research projected that memory semiconductor prices could rise by 50% by the second quarter of next year (April to June), and high-end memory prices could nearly double by the end of next year.

● KOSPI reclaims 4,000 mark with ‘100,000 Electronics’ recovery

The global stock markets rebounded collectively due to NVIDIA's earnings surprise and the surge in memory semiconductor demand.

On this day, the KOSPI closed at 4,004.85, up 1.92% from the previous trading day, reclaiming the 4,000 mark. Samsung Electronics, a leading domestic AI beneficiary stock, rose 4.25%, recovering the KRW 100,000 mark, while SK Hynix also rose 1.6%. Japan's Nikkei average stock price closed at 49,823.94 yen, up 2.65%. The previous day, the U.S. Nasdaq index closed up 0.59% from the previous day.

However, as long as the AI industry's boom continues, bubble concerns are expected to persist. Lee Jong-wook, a researcher at Samsung Securities, stated, “Since July last year, AI bubble concerns have repeatedly shaken stock prices and will not disappear until this cycle ends.”

Michael Burry, an investor famous for his real-life portrayal in the movie 'The Big Short,' posted a diagram of transactions involving NVIDIA, OpenAI, and Microsoft on social media, commenting, “The revenue recognition of these companies is questionable.”

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