Taiwan and South Korea have officially leapfrogged Western markets in valuation growth this year…
TSMC now accounts for a staggering 40% of Taiwan’s total market capitalization, creating a single-point-of-failure scenario…
Michael Burry and other macro bears are publicly drawing parallels between the current AI debt frenzy and the 1999 dot-com bubble…
Foreign capital is fleeing the Indian and UK markets to chase the semiconductor “golden goose” in Asia…
Investors are pivoting from broad “growth” stocks to hyper-specific AI component suppliers, ignoring broader industrial weakness…
Everyone is acting like AI demand is infinite, but history says the crash is always quiet until it isn’t…
Taiwan, S Korea climb global equity ranks on AI
The artificial intelligence (AI) boom has triggered a seismic reshuffling of global equity markets, with Taiwan and South Korea muscling past European nations one by one.
With its stock market now valued at nearly US$4.3 trillion, Taiwan surpassed the UK, Europe’s biggest market, earlier this month, data compiled by Bloomberg showed. South Korea is about US$140 billion away from doing the same. The tech-heavy Asian markets have shot past Germany and France in the past seven months.
The shift is largely down to massive gains in shares of three companies that provide essential hardware for AI: Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest chip foundry, and South Korea’s leading memory makers Samsung Electronics Co and SK Hynix Inc. Meanwhile, European stock markets are more heavily weighted toward financial firms.
‘Big Short’ investor Michael Burry says the AI boom is a dead ringer for the dot-com bubble
Michael Burry says the AI boom is a dead ringer for the dot-com bubble.
The investor of “The Big Short” dissected the two periods in a Substack post and discussion thread this week. He also cast doubt on whether AI will live up to its heady billing.
“History is not a perfect guide, but I see so many indicators both technical and fundamental lining up for the same conclusion,” Burry told his subscribers on Substack Chat.
“1999 went where no market had gone before, and I would say so can this one,” he continued. “It is already there on a number of indicators.”
Burry — who shot to fame after his prescient bet on a housing crash was chronicled in the book and movie “The Big Short” — wrote in his Substack post that he’d purchased more shares of Adobe, PayPal, and Lululemon.
“These stocks are part of the mass whale fall happening away from the main spectacle,” he wrote. “In 1999 this happened too. The old economy and international stuff just got ditched in favor of the All-American bubble.”