Samsung, SK Hynix, and 2x ETFs account for 70% of the trading volume in the South Korean stock market! The main culprit causing the sharp drop in AI computing power is not "excessive computing power," but rather leverage and a stampede.

According to the Wise Finance APP, the enthusiasm of Korean retail investors for leveraged ETFs has become so high that these products, as well as the super-weighted stocks of SK Hynix and Samsung Electronics, which they track in the Korean stock market, now account for more than 70% of the trading volume in the Seoul stock market, with a total market value of about $4.3 trillion. Therefore, in the eyes of some seasoned financial market analysts, the recent sharp decline in global AI computing power themes, especially the dramatic fluctuations and corrections between the benchmark stock indices in the Korean stock market rising over 10% in a single day and multiple circuit breakers in a single day, the culprit in the near term appears to be more towards the clearing of AI semiconductor crowded trades and the imbalance in the stock market trading structure due to high leverage, rather than sudden deterioration in AI computing power demand and so-called excess computing power.