Semiconductors Surpass NFT and Metaverse Trends

Semiconductor Stocks Surge
NFT and Metaverse Wave

[Asia Economy Reporter Hwang Junho] The metaverse, which recently saw a surge in stock prices due to concentrated capital inflows, has taken a severe hit from the ‘concentration’ toward an unchanging blue-chip stock.

According to the Korea Exchange on the 23rd, Samsung Electronics closed at 74,900 won, up 5.20% from the previous day. This is the first time since January 8 that it has shown a rise of more than 5%. Not only Samsung Electronics, but capital also flowed into semiconductor stocks overall. SK Hynix rose 7.17%, and exchange-traded funds (ETFs) containing semiconductor stocks also posted double-digit returns. TIGER Fn Semiconductor TOP10 rose 15.07%, TIGER 200 IT Leverage 15.04%, and KBSTAR Non-memory Semiconductor Active 14.54%, showing capital movement across the semiconductor sector.

On the other hand, non-semiconductor sectors experienced a drought of capital. In particular, as funds withdrew from NFTs (Non-Fungible Tokens) and the metaverse, which had recently attracted capital, the stock prices of related companies fell like autumn leaves. NFT-related stocks such as Gamevil (-12.98%), Seoul Auction (-11.30%), Kakao Games (-9.77%), and Galaxia Money (-9.31%), as well as metaverse-related stocks like Giant Step (-14.77%), Maxst (-14.58%), and WIZWID Studio (-14.07%), saw their stock prices decline.

This rise in semiconductor stocks was driven by CJ Muse, an analyst at global investment advisory firm Evercore, naming Micron Technology, a semiconductor company listed on the U.S. stock market, as a ‘top pick,’ which led to a 7.8% increase in its stock price. Additionally, foreign securities firms consecutively issued positive analyses on semiconductor stocks, causing the entire sector to heat up.

However, the securities industry views this as a temporary phenomenon. Lee Kyung-min, a researcher at Daishin Securities, said, "Although a rapid change occurred as pessimistic sentiment turned into relief, it is still difficult to confirm a signal of trend reversal," and added, "It is necessary to refrain from chasing semiconductor stocks and sectors."

The market atmosphere is already digesting new factors. The day before, Jerome Powell, Chairman of the U.S. Federal Reserve, was reappointed, which was interpreted as a signal of monetary tightening, leading to declines in the IT sector and Nasdaq. As of 9:37 a.m. on the day, Samsung Electronics (-0.40%) and SK Hynix (-0.42%) showed mixed trends with fluctuating stock prices.