Semiconductor Profit-Taking Caution: Korea Investment Says AI Spending Keeps Valuations Low

Korea Investment & Securities said on the 11th that, despite concerns over high inflation, the expansion of artificial intelligence investment continues and investors should be cautious about rushing to take profits in semiconductor stocks. Although recent gains have raised worries that the sector has climbed too far, the brokerage said easing inflation concerns and earnings growth should be considered together. It judged that even after the rally, semiconductor valuations remain low compared with the pace of profit improvement. As AI-related investment continues to support expectations for the industry, the firm said investors need to check the earnings trend rather than focus only on short-term profit-taking. Source: mk.co.kr