South Korean technology equities are staging a sharp recovery, erasing losses incurred earlier in the week when investors fled the sector amid fears of an artificial intelligence bubble.
The reversal comes as the broader market digests Microsoft’s better-than-expected quarterly earnings, which have helped restore confidence in the AI infrastructure trade.
The whipsaw highlights the fragility of sentiment in the global AI supply chain.
Just days prior, traders had aggressively dumped key South Korean semiconductor and electronics stocks, worried that valuations had detached from fundamentals.
That selling pressure has now given way to buying interest, driven by the reassurance that major US tech giants continue to deliver robust growth.
Microsoft’s results served as a critical catalyst for the turnaround.