Chey Tae-won, chair of SK Group, the conglomerate that owns the prolific memory maker SK Hynix (OTCPK:HXSC.F), said during a forum in Seoul that the artificial intelligence industry is not in a bubble, according to Reuters.
However, investor exuberance has led to sky-high valuations, which might face some corrections.
“But when you look at the stock markets, they rose too fast and too much, and I think it is natural that there could be some period of corrections,” he said, according to the report.
SK Hynix provides memory chips to Nvidia (NVDA), the Magnificent Seven member that has benefited greatly from the rise of AI due to its powerful graphics processing units. In October, the South Korea-based company reported record-high revenue and has already sold out its memory chip production for the year ahead due to the rise of AI.
Multiple memory companies have experienced especially strong gains during 2025. Micron Technology (MU) shares have surged 175% year to date, while Seagate Technology (STX) has rocketed more than 200%.
Broadcom (AVGO) has increased nearly 70% year to date, and Advanced Micro Devices (AMD) shares have climbed 81%. Nvidia shares have advanced 36%. Intel (INTC) shares have more than doubled in 2025.
Some software companies have also enjoyed the AI wave. Palantir (PLTR) has shot up 135%, while AppLovin (APP) has risen 116%.