[Edaily Marketin Reporter KIM SUNG-SOO ] “The artificial intelligence (AI) revolution is not even 15% complete yet. Along with the growth of the AI industry, a bull market centered on Korean tech stocks will continue for several years. The KOSPI index will break through its previous high within the next 6 to 12 months.”

Dan Ives, a leading Wall Street tech analyst and Partner and Senior Managing Director at Yorkville Ives, expressed strong optimism about the AI industry and global tech stocks during a press conference held on the 14th at the Conrad Hotel in Yeouido, Seoul.

“This is not an AI bubble… Capital expenditures of 3 trillion to 4 trillion will continue for years.”

Ives compared the current AI investment fervor not to the peak of the 1999–2000 dot-com bubble, but rather to the situation around 1997, assessing that the AI industry has ample room for growth.

He said, “Over the next few years, capital investments totaling $3 trillion to $4 trillion (approximately 4,012 trillion to 5,350 trillion won) will be made,” adding, “Software, infrastructure, and semiconductors—which are driving the AI revolution—will lead the tech stock bull market.” He continued, “We expect the tech sector to lead stock price gains over the next few years.”

Ives also dismissed recent market concerns about an AI bubble and questioned the sustainability of Big Tech’s massive capital expenditures.

He explained, “During the 1999 bubble, tech stocks traded at more than 30 times revenue, but now they are trading at around 23 times,” adding, “Back then, companies relied on venture capital and lacked real-world use cases, but today’s Big Tech companies have massive assets and annual revenues in the hundreds of billions of dollars.”

He continued, “There are concerns about whether AI investment is sustainable,” but added, “However, the fact that $3 trillion to $4 trillion in investment is expected over the next few years means we are in the early stages of the Fourth Industrial Revolution.”

He also emphasized, “Concerns about China’s low-cost open-source AI models and the funding pressures faced by AI companies due to rising interest rates are like speed bumps that naturally appear in the process of creating a new economic model.”

Ives Partner also offered a positive outlook on the South Korean stock market. He said, “The South Korean market is playing a leading role not only in memory but also in AI models, software, infrastructure, and energy,” adding, “I believe the market is undervaluing the role South Korea has played in the technology and AI sectors.”

“Memory Supply Shortage Expected Over Next 3 Years… Korean Semiconductor Stocks Undervalued”

Ives characterized the recent volatility in the Korean stock market and the selling pressure from foreign investors as an “excessive correction.”

He said, “Not only Samsung Electronics and SK Hynix, but the entire Korean market has experienced an excessive correction,” adding, “While concerns about overreliance on AI and data centers have had an impact, the volatility currently centered on memory stocks lacks a solid basis.”

Ives predicted, “The KOSPI index will break through its previous high within the next 6 to 12 months,” adding, “Once investors shake off their psychological anxiety and begin to view corporate fundamentals rationally, stock prices could rise.”

Ives Partner predicted that the shortage of memory semiconductors would persist for an extended period. He said, “South Korean memory companies are about three years ahead of China in terms of technology,” adding, “Memory supply and demand will not reach equilibrium until 2029, so the supply shortage will continue.”

He went on to emphasize, “Rather than being overly concerned about China’s rise, we need to view the current moment as an opportunity to buy memory companies at a discount.”

Ives Partners included SK Hynix on its list of key technology stock investment targets for this year. He cited the company’s “AI monetization capabilities” as the reason.

He explained, “When examining which companies are in a strategic position to better monetize the AI revolution as of this year, I rated SK Hynix relatively higher (than Samsung Electronics),” adding, “I also maintain a consistently positive view of Samsung Electronics.”

He continued, “Samsung Electronics has a strong foundation in mobile and consumer businesses, so it stands to benefit significantly as the AI revolution progresses,” adding, “The differing assessments of the two companies can be viewed as a matter of timing.”

Regarding the mixed performance of memory companies’ earnings and stock prices, he said, “This is because investors are focusing too much on the cyclical aspects of the memory industry,” adding, “Since we have entered a full-fledged memory supercycle, I expect the value of related stocks to rise over the next 12 to 18 months.”

“Top Picks” Including NVIDIA, Microsoft, Palantir, and Apple

Ives Partners identified the following as top picks for major tech stocks in 2027: △NVIDIA △Microsoft △Palantir △Apple △CrowdStrike.

He assessed, “NVIDIA is currently leading the AI revolution and is a key company providing related semiconductors,” adding, “Among hyperscalers, Microsoft is in the most advantageous position.” While setting a target price of $615 for Microsoft, he noted, “There is upside potential all the way to $700.”

Regarding Palantir, he said, “It is maintaining a strong growth trajectory, and we expect its market capitalization to exceed $1 trillion (approximately 1,336 trillion won).”

As for Apple, he cited it as a key player in the AI revolution as experienced by consumers. Ives noted, “Apple has a base of approximately 1.5 billion iPhones and 3.6 billion iPhone users, giving it the scale to monetize AI,” and set a target price of $400.

Ives also mentioned the possibility of a merger between Tesla and SpaceX. “I estimate there’s an approximately 80% chance the two companies will merge next year,” he said, adding, “Tesla is in the process of transitioning from an electric vehicle company to an AI company.”

He continued, “Tesla CEO Elon Musk’s vision is to bring AI-related technologies under one roof,” adding, “I am confident in the path chosen by Tesla and SpaceX.”

Among Korean companies, he also highlighted the growth potential of Hyundai Motor and Hanwha. “Hyundai Motor could benefit in the physical AI sector, where automotive and autonomous driving technologies are expanding,” he said, noting, “Investors do not yet fully understand the businesses Hyundai Motor is pursuing, and this is not yet reflected in its stock price.”

Regarding Hanwha, he noted, “The company is actively making strides in the defense technology sector,” and predicted, “As the AI revolution progresses, the defense sector will also benefit significantly.”

“Cybersecurity Growth Driven by AI Adoption… Budgets to Nearly Double Within 3 Years”

Ives Partners predicted that the cybersecurity industry would see increased growth opportunities alongside

the spread of

AI.

He said, “As AI agents become more widespread, the scope of potential attacks is expanding significantly,” adding, “Budgets for cybersecurity companies need to roughly double within the next three years.”

Accordingly, he identified CrowdStrike as a key investment target in the cybersecurity sector. He also cited Palo Alto Networks, Zscaler, Rubrik, and Fortinet as promising companies.

Ives Partner said, “We expect the stock prices of these companies to outperform other software-related stocks over the next 6 to 9 months.”

Ives emphasized that the U.S. must not impose regulations on the AI industry that would slow the pace of technological advancement. “China will actively support the AI industry rather than regulate it,” he said, adding, “If the U.S. slows down due to misguided regulatory choices, it will ultimately lose the AI war against China.”

However, he advised, “A certain level of safeguards is necessary,” adding, “Regulations must not act in a way that slows down the momentum of the Fourth Industrial Revolution itself.”

He identified physical AI as the next stage of the AI industry. Partner Ives said, “Physical AI—such as robots and autonomous vehicles—has not yet truly taken off,” adding, “I believe physical AI will grow on a larger scale than agentic AI.”

Finally, Partner Ives urged Korean investors to focus on corporate fundamentals rather than short-term stock price fluctuations.

He remarked, “The recent sell-off actually presents an opportunity to buy at low prices,” adding, “Since the AI bull market is still in its early stages, I believe the volatility the Korean stock market has recently experienced lacks a solid basis.”

Yorkville Ives & Co. is a financial firm based in New Jersey, USA, which was launched on July 15. It provides investment banking services based on a commercial banking model that combines corporate finance services with direct investment.

The company provides financial services tailored to each stage of a company’s growth through research, strategic advisory, financing, and direct investment, and also invests alongside its clients. Its key areas of focus include AI, innovative technologies, energy transition, infrastructure, and industrial goods.

Partner Dan Ives is an analyst who has been covering technology companies on Wall Street for over 25 years. He earned a Bachelor of Science in Finance from Pennsylvania State University and a Master of Business Administration (MBA) from the University of Maryland, and spent 16 years at FBR Capital Markets as a technology analyst and managing director. He is currently building the technology research business at Yorkville Ives, with a focus on AI and innovative technologies.