AI Trade OVER!? South Korean Stocks CRASHING!📉

At this point, a lot of you guys know I'm from New Jersey. If you didn't know, now you know, and there used to be a roller coaster at Six Flags in Jackson, New Jersey called Kingda Ka. Do you guys remember Kingda Ka? Have you ever rode Kingda Ka? Let me know in the comments. One of the craziest roller coasters I've ever been on. Honestly, probably the craziest roller coaster. And that's exactly what the market reminds me of these days. We're up a little bit one day, we're crashing big time the next. It is unbelievable, man. The KOSPI, the South Korean index, went down 10% yesterday, and it's down 30% over the past month. We've had another China deep seek moment, which is spooking the AI trade, and now we're hearing about this new Chinese memory company that just went IPO, and it went up what? 450, 500% causing even more panic in the AI trade, and the memory stock trade. And well, it's causing a lot of these South Korean stocks to go down, and we have to break down everything that's going on in this video, guys. That Chinese company, memory company, that just went IPO, we'll break down the charts and go over what I'm doing overall in this market. So guys, hit the like button, make sure to subscribe, join my Patreon if you want to keep up with my actual portfolio updates, my trades, investments, and if you want to be a part of my private Discord, that's linked down below, pinned in the comments, or go to stockserfest.com/patreon. And now, take a sip of your coffee, guys, you'll need it. Cheers. I appreciate you all for tuning in, and let's get into it. So, as of right now, every index in the US market is all over the place. The Qs are down about 3/4 of a percent, which, I mean, And have rallied a lot intraday. Uh, they were down 2% earlier. Now again, we're only down 3/4 of a percent, but we're still down. The The Russell's down actually now pretty much at break even, barely down as the S&P is green, 0.3% in the green, and the Dow's up over 1 and 1/4 percent. And this is exactly what I'm talking about with that, you know, roller coaster analogy. We're up, we're down, we're crashing, we're spiking. It is freaking insane. And a lot of this has been triggered again by the South Korean market. This is spooking a lot of investors, China as well. And we're seeing stocks like SK Hynix. Do you guys remember it just got listed here in the United States on the Nasdaq? Well, it is down to 130. We hit 128 earlier today after hitting 195 just 2 weeks ago. So, SK Hynix is crashing. We have stocks like Samsung, which by the way, those two make up, I think, 50% of the Kospi, the South Korean index. So, those are tanking. Memory names here in the United States like Micron, down another 9% today. This stock's down 30% over the past month, and it's a lot worse for SanDisk, and I mean a lot worse, guys. SanDisk is now down over 50% from all-time highs. We hit 2,400, now we're at 1,000, 1,100 bucks a share, down 14% on the day. And this stock's down, you know, I think 48% in the past month alone. So, these stocks are getting hit. And again, it's not just because of South Korea, but China, this new memory company that went IPO. And we've had another China deep seek moment where, oh my god, you know, these Chinese models, allegedly, they're just almost as good as the US models, which I'm not buying, and they're a lot more cost-effective, right? That's spooking the trade. Oh my god, are these US companies spending too much money on the build-out? Are they not going to be able to monetize it as, you know, handsomely as they previously expected? That is what's going on through a lot of investors' minds right now. So, let me show you quickly here what's going on with this Chinese company that just went IPO. We'll talk about the KOSPI very quickly here. Let me pull it up, guys. Bear with me. Give me a second. So, look at the KOSPI. This thing tanked 11% almost in a day. It lost 730 points, and it closed at 6,000 points. And look at the past month. In the past month, it is down 2,300 points, 28%, and believe it or not, year-to-date, this goes to show how volatile this market is, particularly the South Korean market, the the index is still up 40% year-to-date. I mean, this thing has been on fire all year, and quite frankly, it was due for a big drawdown. We almost hit what? 9,000, 10,000 points. Now we're down to 6,000, and again, we're still up, still in an uptrend. So, honestly, man, when in doubt, zoom out. I know a lot of you don't want to hear that. You don't want to hear that. I sound like a broken record, but it's not too bad when you look at the year-to-date chart, but when you look at the month, the 5-day, the intraday, yeah, it's ugly for a lot of these indices, especially these South Korean stocks, but it's not the end of the world. And they have such exposure to memory. That is why the South Korean market is getting destroyed right now because of memory stocks. Samsung makes around 27 to 28% of the total index while SK Hynix makes up around 23 and 1/2 to 25%. So, when these stocks get hit, man, it works both ways. When they go up, the South Korean market's crushing it. When they go down, well, it works both ways. These stocks are dragging down the market like no other and this is as well. Chipmaker CXMT it just made its market debut and it went up almost 500% and we can see right here, uh making it the most valuable China-listed company. If we come down here a little bit, guys, shares of chipmaker, um Changxin, uh I'm going to butcher this, Technology Group, soared nearly 466% Monday in their debut in their debut on Shanghai's tech-heavy STAR Market, making CXMT the most valuable China-listed company. And the Hefei-based firm had raised about 58 billion yuan, about 8.6 billion dollars, after pricing its IPO at 8.66 or $8 or 8, whatever, 8.66 yuan per share, making it Asia's biggest so far this year, ladies and gentlemen. And the global DRAM market is dominated by, of course, Samsung, SK Hynix, and Micron. And we can see here Theodore Shu, CEO at Yikai Capital on CNBC, um on CNBC's Squawk Box Asia, said, "I have no doubt the company is going to grow to be a global leader. It's maybe just a question of time that it can be not only a challenger, it can be a global champion in this particular sector." So, the fact that we're seeing this completely new player come into play in a market that's being dominated by um again Samsung SK Hynix and Micron. This is spooking the overall market. Overall because it could drive memory prices lower. It could you know, it could you know, some of these bigger hyperscalers could go to these companies for their needs. You know what I mean? We're seeing Apple about a month ago started getting some memory chips from China for their products in China. That's what we were hearing. So this is causing some panic in the overall market guys. Let me come back here to thinkorswim. And the reality is guys the biggest concern isn't necessarily that CXMT has better technology, right? It's that China may be able to produce an enormous amount of memory at lower prices. So this is kind of the same you know, thought process with these LLMs, these AI models that we're seeing coming out of China. Oh my god, are they going to be a lot cheaper, more cost-effective? They are allegedly and they're allegedly almost you know, they're a notch behind the US models, but they're getting close. This is the same thing we're kind of kind of seeing here with these memory with memory out of China, you know? And the memory industry you guys know is extremely cyclical. And when manufacturers produce too many chips, right? Supply exceeds demand, memory prices decline and profitability can collapse very quickly. I don't think we're necessarily there yet, but this could be something worth looking at further down the road. Further down the road, right? And CXMT is reportedly targeting approximately 350,000 wafer starts per month by the end of 2026. And some industry experts believe, and they estimate, place the the some industry estimates place that surprisingly they place that surprisingly close to Micron's projected manufacturing capacity, that 350,000 wafer start number. And if those estimates are accurate, guys, CXMT could approach Micron scale in terms of wafer capacity, even if its technology yields and profitability remain behind. So, this is again spooking the overall market. CXMT helps China pursue several strategic goals, and you guys know China is all about their domestic companies, right? And this is causing again global pressure, right? CXMT helps China pursue several strategic goals, like reduce dependence on Micron, Samsung, and SK Hynix, build a domestic AI and data center supply chain, protect Chinese technology companies from future export restrictions, keep semiconductor spending inside of China, and develop manufacturing knowledge that can eventually move into more advanced memory. So, it makes sense from China's perspective, guys, it makes sense to want a domestic memory producer. You want GPUs made in China and used by Chinese companies. It makes sense, right? And this is causing again fear, uncertainty in the overall trade, even if these memory chips aren't as good, or they're not as, you know, strong as Micron, SK Hynix, and Samsung's chips. That's the reality. It's causing, you know, fear right now, and it's, you know, it's it's bleeding through the Korean markets into the United States markets. And I don't know when the bottom will be, guys. Nobody knows where the bottom is on these names. Uh but, the reality is, man, we'll never know. And if we want to, you know, buy buy up quality companies, whether they're in memory, whether they're in G in the GPU space, maybe not even AI correlated, you know, the best time to buy is when they're down a lot. And a lot of these stocks are just getting bludgeoned. And full disclosure, I'm not in memory names right now. Personally, I'm still on the sidelines on SanDisk, Micron, SK Hynix. I'm not quite yet in these names. Um I used to be. I I sold. I made money. I took my profits. Uh but, I am in the AI trade. Some of my key investments are obviously um Nvidia. You guys know I'm heavily in Nvidia. I think Amazon, although it's not, I guess, a direct uh you know, chip maker, well, I guess, soon maybe they will be you know, a lot bigger in that space. But, Amazon's a key trade for mine for me in in the space. I'm not in any of these neo clouds, right? I am in GLW. That's one that I am in right now, which is getting destroyed. I am down a good chunk on GLW. But, other than that, guys, I'm not really feeling crazy impact from this drawdown. Uh but, it is it is interesting watching it unfold, and I understand why certain people are are people in general, investors, are freaking out. But, this is why or this is when, rather, you want to buy into the fear. Because, at the end of the day, man, we are winning the AI race. The United States is winning the AI race. That's the reality. For the first time in a long time, we're ahead of China technologically, right? For now, at least. And I believe that's going to be the case for quite some time. And And you believe that, if you believe that, this deep seek moment 2.0, right? The fear caused by this Chinese IPO, it should only be pushing you to buy more. What what are we going to do? Go buy it CXMT? Go buy what? Alibaba, right? We're going to go buy these ADRs? No, we're not doing that, man. At least I'm not. You guys can go ahead and do that, but I think it's just opening up opportunity for a lot of these memory names. And like I said, I'm not in them right now, but I'm not that that doesn't mean I'm not looking to get back in. You know what I mean? I've been saying for probably 2 weeks now. I think Micron could be going down to 700, 750. We've had this head and shoulders brewing for quite some time. I've been saying that. So, I think I think it's going to play out. I think we will take out $800. I think we will in the short term. That's the reality for me. And uh, you know, from that point, I think we're going anywhere from 650 on the lower end to 750. That is where I think the buying will start to come in again, right? I think in this little pocket right here, we'll start to get um, some buying in this window. And and at that point, I think we'll be due for a big relief rally. So, even if you want to get in for a longer term play, for a relief rally, I think this is where you'll get it. Anywhere between 650 to 750, 700. I think it's a golden spot for Micron. And SanDisk, I think it's a bit I I don't think, I know is a bit more volatile. So, I'm not I much prefer Micron over SanDisk, personally. Um, honestly, DRAM as well, over SanDisk, which is a memory ETF. Uh, you guys know DRAM, it's down almost 40% from highs. So, guys, this is where the opportunity is at. If you have stock If you have a stomach, if you have guts, um, and if you're not, you know, scared to hold through volatility. So, what do you guys think? Let me know in the comments. Unbelievable day. Um, we're up, we're down. It's like Kingda Ka from Six Flags, man. Insanity. And at this point, the best thing you can do is nothing. Hold, close your laptop, and just just don't read all these headlines. If you're reading the headlines, "Oh, the Fed's going to hike rates. Oh, South Korea's going to zero. Oh, China's going to wipe out the entire AI trade." You're going to freak out. You're going to panic. You're going to want to sell. Focus on the fundamentals and relax. That's what I'm doing. And uh I moved some stocks around today, guys. I moved around some money. I actually sold out. Um, I sold out of Meta. I should have mentioned this earlier in the video. Maybe I'll make another video. Uh, well, I am going to make another video today, guys. I sold out of Meta. I sold some XNET. I sold some Robinhood shares for a profit there. Um, and I bought some NextEra Energy, ticker NEE, which we'll talk more about that in the next video. So, for now, that's it. Make sure you guys hit the like button, subscribe, join my Patreon if you want to keep up with my actual portfolio updates, my trades, investments. And if you want to be a part of my private Discord community, it's all on Patreon. Link down below, pinned in the comments, or go to stossurfast.com/patreon. I'll see you guys in there. And with that being said, cheers. Have a great rest of your day.