Leveraged single-stock ETFs have become extremely popular in Korea, with retail investors pumping $9 billion into them. These products amplify returns but are designed for short-term trading. SK Hynix and Samsung are starting to trade like meme stocks, with valuation ignored in favor of imagination. A sudden market turn could trigger margin calls and forced selling, potentially traumatizing a new generation of investors. However, the AI boom is unlikely to burst this year as supply-demand dynamics remain tight through 2027.

AI-driven chip demand (TSMC, SK Hynix, Samsung) has created exceptional returns, drawing massive retail participation in Taiwan and Korea. Retail investors are using heavy leverage (margin loans, pledged-stock loans) and risky structured products. Foreign/institutional investors are selling into the rally, making markets fragile. A sudden shift in AI sentiment could trigger forced selling and contagion to global markets, though supply-demand dynamics remain tight through 2027.