"Shock from Jensen Huang's Bubble Will Be Severe"

"Shock from Jensen Huang's Bubble Will Be Severe" Warning... Are Retail Investors Facing a 'Boomerang'?

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"Shock from Jensen Huang's Bubble Will Be Severe" Warning... Are Retail Investors Facing a 'Boomerang'?

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Economy

"Shock from Jensen Huang's Bubble Will Be Severe" Warning... Are Retail Investors Facing a 'Boomerang'?

Lee Hyeon-yeong

Seoul

Published 2026.08.03 22:29

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Foreign media outlets have warned that NVIDIA CEO Jensen Huang's market intervention is inflating an artificial intelligence bubble.

The British economic weekly The Economist reported that "NVIDIA CEO Jensen Huang is funding the AI ecosystem and intervening in the market like a central bank," adding that "the South Korean stock market could be hit the hardest."

It further pointed out that "the deeper CEO Huang's intervention becomes, the more severe the shock will be when the bubble bursts."

The Economist specifically highlighted the recent sharp declines in the stock prices of Samsung Electronics and SK Hynix as a precursor to the collapse of the global stock market bubble.

It analyzed that concerns over the so-called "peak-out," suggesting memory semiconductor prices have reached their peak, have spread and dragged down the share prices of the two tech giants.

The Economist identified structural vulnerabilities within the South Korean market as a major factor fueling stock market instability.

It directly criticized South Korea, describing it as "a giant testing ground combining the extremes of state capitalism and market speculation."

It explained that as the government stepped in to boost the stock market following the emergency martial law situation, a retail investment craze ignited; furthermore, single-stock leverage ETFs permitted in late May triggered a vicious cycle of massive forced liquidation and account closures during stock declines, maximizing market volatility.

It then diagnosed that even if the two semiconductor giants rake in massive amounts of cash, a structure where profits are concentrated in specific stages of the supply chain is difficult to sustain for long.

It also presented the fierce pursuit by Chinese memory manufacturers and the possibility of long-term contract defections in the event of a future economic downturn as key risk factors to watch out for.

Bloomberg also warned on July 30 that "the recent decline in the KOSPI is the tip of a giant iceberg" and that "concerns surrounding the AI industry could spread from South Korea to the rest of the world."

(Reported by Lee Hyeon-yeong | Video edited by Seo Byeong-wook | Designed by Yook Do-hyun | Produced by SBS Digital News)

※ Please note: This article was translated by AI and may contain errors.

View Korean Article (한국어 기사 보기)

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"Shock from Jensen Huang's Bubble Will Be Severe"

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