SK Group Chief Warns AI Stocks Could Correct but Industry Not in a Bubble

SK Group chairman Chey Tae-won addressed concerns raised by the Bank of Korea governor about potential AI bubbles in comments on December 5, 2025 [1]. He stated that AI stock valuations have outpaced fundamental values, signaling a possible correction, but emphasized the AI industry itself is not in a bubble due to its long-term productivity-driving potential.

The warning coincided with a 0.43682% decline in the Technology sector that day, reflecting dampened short-term sentiment [0]. Two key AI supply chain players showed mixed performance:

• SK Hynix (000660.KS)
  : Up 214% over 1 year from AI memory chip demand [1], but its 30-day performance shows a 2.06% gain with current price below the 20-day moving average (MA), indicating a recent pullback [0].
• NVIDIA (NVDA)
  : A critical AI chip supplier with 30-day gains of 1.64%, but also trading below its 20-day MA amid volatility [0]. NVIDIA faces emerging competition from custom chips by major clients like Microsoft and Alphabet [2].

Long-term industry support is evident in SK Hynix’s record quarterly profits and full production sell-out for 2026, confirming strong underlying demand for AI hardware [1].

1. Credible Industry Perspective
   : Chey’s comments carry weight due to SK Group’s direct exposure to the AI supply chain through SK Hynix, linking market sentiment to industry fundamentals.
2. Short-Term vs. Long-Term Divergence
   : The correction warning contrasts with affirmation of the AI industry’s long-term viability, creating a mixed outlook.
3. Dual Risks for NVIDIA
   : Beyond valuation concerns, the company faces competition from client-developed custom chips [2], threatening its market dominance.
4. Supply Chain Strength
   : SK Hynix’s full production sell-out underscores ongoing strong demand for AI hardware, supporting the industry’s non-bubble status [1].

• Valuation Correction
  : Overvalued AI stocks are vulnerable to pullbacks [1].
• Competition Risk
  : NVIDIA’s AI chip dominance is challenged by client-developed custom accelerators [2].
• Supply Chain Disruption
  : SK Hynix’s tight production (full 2026 sell-out) exposes the industry to supply chain risks [1].
• Geopolitical Tensions
  : US-China tech conflicts and Asia-Pacific regional issues may impact AI chip production/shipping.

• Long-Term AI Growth
  : The industry’s non-bubble status and expected productivity gains offer long-term investment potential [1].
• AI Hardware Demand
  : Strong demand for AI memory chips benefits supply chain players like SK Hynix [0][1].

SK Group’s Chey Tae-won’s comments signal a potential short-term correction for overvalued AI stocks, while affirming the AI industry’s long-term viability [1]. The Technology sector declined on the announcement day [0], with SK Hynix and NVIDIA showing recent pullbacks below their 20-day MAs [0]. SK Hynix’s full 2026 production sell-out supports long-term demand [1], while NVIDIA faces competition from client-developed chips [2]. Decision-makers should monitor earnings reports, regulator comments, and competition/supply chain developments.