SK Securities researcher Kang Dae-seung stated in a strategic commentary report on October 27 that computing power demand remains unshaken despite growing uncertainty over AI investment sustainability in global stock markets. The analysis responded to market concerns triggered by CoreWeave bonds trading at junk-bond-level rates and Meta's announcement of creating non-voting shares to fund AI investments. Kang distinguished the current AI cycle from past economic crises, noting that unlike the dot-com bubble or 2008 financial crisis, no actual demand reduction signals have appeared in AI infrastructure.
B200 GPU Rental Prices Rose 14% in October
B200 GPU rental prices increased 14% in October, according to the report. NVIDIA CEO Jensen Huang stated at the same event that demand itself is overflowing. Amazon forecasted cloud capacity shortages continuing through next year. Kang noted that capital raising concerns are intensifying competition to secure computing power.
Dot-Com Bubble and 2008 Crisis Showed Demand Decline Before Collapse
Kang drew distinctions between current AI investment patterns and historical economic crises. He stated that both the dot-com bubble and 2008 housing financial crisis were triggered by declines in effective demand. Cisco Systems' vendor financing and WorldCom's accounting fraud during the dot-com era amplified shocks but were not the triggers, according to the analysis. Dot-com companies went bankrupt first, followed by larger collapses among infrastructure equipment providers. During the financial crisis, structured debt instruments amplified the shock, but housing prices began declining more than one year before stock market peaks. Kang stated that the current AI industry is at a stage of worrying about capital raising, with no signals showing demand has weakened.
Korean Semiconductor Sector PBR Returns to Pre-AI Boom Levels
The price-to-book ratio (PBR) of Korea's semiconductor sector has fallen to the average range seen before the AI investment boom. Return on equity (ROE) forecasts exceed the historical average by more than four times. The report cited expectations for next year's profit growth and expanded shareholder returns.
KOSPI Valuations Fall Below Historical PER Average
The KOSPI excluding Samsung Electronics and SK Hynix has declined to historical average valuation levels. The price-to-earnings ratio (PER) has fallen below the historical average. Kang stated that non-semiconductor sectors have also declined together, making prices cheap relative to earnings strength. He assessed the current range as a position to accumulate stocks.
FAQ
What did SK Securities say about AI computing demand on October 27?
SK Securities researcher Kang Dae-seung stated in a report on October 27 that computing power demand remains unshaken despite growing uncertainty over AI investment sustainability in global stock markets.
Why did B200 GPU rental prices increase in October?
B200 GPU rental prices rose 14% in October. NVIDIA CEO Jensen Huang stated that demand itself is overflowing, and Amazon forecasted cloud capacity shortages continuing through next year, according to the SK Securities report.
How do Korean semiconductor sector valuations compare to historical levels?
The price-to-book ratio (PBR) of Korea's semiconductor sector has returned to the average range seen before the AI investment boom, while return on equity (ROE) forecasts exceed the historical average by more than four times, according to the October 27 SK Securities analysis.
