The Zhitong Finance App learned that analyst Dan Ives said that as concerns about artificial intelligence (AI) trigger excessive sell-off, the South Korean stock market may hit a record high within the next 6 to 12 months. The Yorkville Ives partner and senior managing director is optimistic about the Korean semiconductor company's room for further growth. It is expected that US technology stocks will rise to 2029, and announced five promising stocks for 2027.
KOSPI sell-off creates buying opportunities Samsung and SK Hynix are undervalued
“Korea reminds me of Silicon Valley in the mid-90s,” Ives said at a news conference in Seoul on Wednesday. He added that global AI investment is still in its early stages, and investors have underestimated the role of Korean companies in the AI ecosystem.
Ives expects KOSPI to recover to around 9,000 points within the next 6 to 12 months. “Four years ago, small Wall Street financial institutions didn't even know what KOSPI was, but now even New York taxi drivers know it,” Ives said.
However, the index turned lower on Wednesday, after rising 2.6% previously. Exchange-traded funds (ETFs) focusing on South Korea are also under pressure. Direxion Daily South Korea Bull 3X Shares (KORU.US) fell more than 4% in the premarket, while iShares MSCI South Korea ETF (EWY.US), which tracks Korean large and mid-cap stocks, fell 1.3%.
Ives believes that South Korean semiconductor giants SK Hynix (SKHY.US) and Samsung Electronics (SSNLF.US) are underestimated compared to their fundamentals.
Ives also refuted concerns about the expansion of production capacity and technological progress of Chinese memory chip makers (including Changxin Storage). He said that South Korean companies are at least three years ahead of their Chinese rivals. He acknowledged that China might close the gap and eventually develop a competitive solution, but said concerns about Chinese competition hurting South Korean memory chip companies were exaggerated.
NASDAQ may reach 35,000 points in 2029 Ives announces five major technology stocks for 2027
Ives also predicts that as AI investments expand, the valuations of major US tech stocks may rise by an average of 30% by 2029.
“The fourth industrial revolution led by AI is only about 15% complete,” he said, adding that NASDAQ could reach 35,000 points by 2029. The tech-intensive index closed at 27204.38 points on October 13. If it reaches this level, it means a potential increase of about 29.6% over the next three years.
Looking ahead to 2027, Ives listed Nvidia (NVDA.US), Microsoft (MSFT.US), Palantir (PLTR.US), Apple (AAPL.US), and CrowdStrike (CRWD.US) as the top five technology stocks. He is also optimistic about Tesla (TSLA.US) and SpaceX (SPCX.US), predicting an 80% probability that the two companies will merge within the next 12 months.
“Musk's plan is to bring all AI companies under one roof, and the entity will become the world's largest hyperscale cloud service provider,” Ives said.
The Korean stock market has risen sharply this year, and KOSPI has risen more than 42% during the year so far. Similarly, the iShares MSCI South Korea ETF is up about 70%, and Direxion Daily South Korea Bull 3X Shares is up over 59%.