AI Summary
5 min readCrash in Progress? AI Bubble, Tesla & SpaceX Stocks
South Korea's Kosdaq index has been halted for trading multiple times this month as the sell-off intensifies. The Kosdaq is down over 37% from its peak, while SK Hynix and Samsung Electronics have each fallen more than 10% in a single session. Meanwhile, a Chinese memory chip company called CXMT soared 466% on its stock market debut, making it worth more than Tencent — and valued at 1,600 times earnings. These are the kinds of disconnects that suggest something is shifting in the AI trade.
The South Korea sell-off and what it signals
The Korean market has been ground zero for AI speculation, particularly around memory chip companies. The Kosdaq index, which had been up 76% over the past year, is now in a sharp decline. Trading halts have become routine. Chris Nortland, who has been tracking the situation, describes it as "a market crash where you just see these things going down crazy."
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What you'll learn
- 1 Crash in Progress? AI Bubble, Tesla & SpaceX Stocks
- 2 (00:00) **Opening: The AI Genie Promise** - Sam Altman claims AI is close to creating a "genie that can grant any wish," setting the stage for the episode's skeptical tone
- 3 (00:47) **South Korea's AI Bubble Crash** - The Kosdaq index has plunged after a massive AI-fueled rally, with trading halts becoming routine
- 4 (03:32) **Chip Rout Deepens on Circular Funding and China Fears** - Headlines show AI stock sell-off accelerating as investors dump chipmakers
- 5 (06:18) **Meme Stock Vibes in Korean Markets** - Viral social media posts from Korean retail investors echo the 2021 meme stock mania
- 6 (07:46) **China's CXMT: The 1600x Earnings IPO** - A Chinese memory chip company soared 466% on debut, now valued at more than Disney, Boeing, and BlackRock combined
- 7 (10:52) **Tesla and SpaceX: Valuation Disconnects Exposed** - Gordon Johnson and George Noble argue that public launches of FSD and SpaceX reveal fundamental execution failures
+ Full timestamped outline available in the app
Guests on this episode
Show Notes
John Johnston (JJ) looks at whether or not the AI Bubble has started to burst. Is the AI sector unwinding after a huge run-up? We look at various market signs in the memory and semi-conductors sectors in particular, including the hugely volatile and speculative South Korean stock market.
Related episodes:
SpaceX Stock Crashes Nearly 50% | AI Bubble Bursting? https://open.spotify.com/episode/0t5v6pEahXpXicuD6abAxS
SpaceX Stock Crashes $1T & AI Trade Reverses! https://open.spotify.com/episode/7jC4ipCe0PADreDavJVua8
Referenced videos:
South Korea's AI bubble just crashed | Chris Norlund https://youtu.be/8tZt85X4DjA
China Is Undercutting America’s AI Giants | Prof G Markets https://youtu.be/Tir4jiraB3Y
Crashes in Progress. Look Out Below | Gordon Johnson & George Noble https://georgenoble.substack.com/p/crashes-in-progress-look-out-below
Disclaimer: I am not a financial adviser and nothing in this content is financial advice. This content is for general education and entertainment purposes only. Do your own analysis and seek professional financial advice before making any investment decision.
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