① JPMorgan Chase Kerry Craig, Managing Director of Asset Management, predicts that South Korean companies, especially in the semiconductor industry , will... Manufacturers will continue to see a surge in demand next year; ② Craig refutes recent claims about artificial intelligence . The article discusses concerns about a bubble, explaining that most of the current funding comes from corporate cash rather than debt; ③ Craig also believes that the South Korean stock market will be "quite favorable" compared to the US stock market next year.
Kerry Craig, managing director of JPMorgan Asset Management, said South Korean companies—especially those at the heart of the global artificial intelligence (AI) supply chain (such as semiconductor manufacturers)—are likely to continue their upward trend next year due to increased demand. Craig also dismissed recent concerns about a potential AI bubble in the stock market.
"People are starting to worry about the level of capital expenditure, but I don't think it's a bubble at all," Craig said in an interview in Seoul on Thursday (December 11).
Craig explained that this is because most of the funding currently comes from the cash held by companies, rather than debt, and this is justified by the fact that companies have real market demand and strong profit prospects, unlike the situation during the dot-com bubble.
Are there no bubble concerns?
Craig's remarks came amid widespread market concerns about an "artificial intelligence bubble," while investors also expressed concern about U.S. tech companies borrowing heavily to fund large-scale AI infrastructure projects.
For example, oracle bone script Oracle's latest quarterly revenue fell short of market expectations, causing its stock price to plummet on Thursday (December 11). Oracle had previously raised approximately $18 billion in debt in September through a bond issuance to invest in large-scale artificial intelligence data centers . .
But Craig argues, "You can look back at the expansion of the internet and fiber optics. A lot of money was invested in fiber optic infrastructure, and although it took years to complete, it was eventually adopted." He adds that the adoption rate of artificial intelligence is still "very low."
Craig predicts that the upward trend in US AI stocks will continue, but at a smaller pace than the surge seen this year. In contrast, the South Korean stock market is expected to perform "quite favorably" next year.
He stated that as long as the US economy continues to grow and the demand for artificial intelligence remains, this demand will flow to the Asian market.
South Korea’s benchmark KOSPI index is the best-performing stock index among G20 members this year, rising more than 60% since January. The rally has been led by the country’s two chip giants: Samsung Electronics’ shares have more than doubled and SK Hynix’s shares have more than tripled by December.
Craig believes that the South Korean market is not "overvalued" compared to other markets. In addition, the depreciation of the US dollar and the diversified technology companies in South Korea, ranging from shipbuilding to defense, are likely to drive the KOSPI up in the future.
In addition to JPMorgan Chase , Nomura also predicted in a report this week that the South Korean benchmark Kospi index has further room to rise, driven by the semiconductor supercycle and ongoing corporate governance reforms, and is expected to reach 5,000 points in the first half of 2026.
As of press time, the Kospi index closed at 4167.16 points on Friday (December 12).
(Article source: CLS)
