Citigroup downgrades South Korea to neutral citing AI chip volatility
Citigroup has shifted its outlook on South Korea from overweight to neutral, pointing to wild swings in AI-related chip stocks and prices that feel a bit stretched.
The KOSPI index has been bouncing around thanks to retail traders piling into single-stock ETFs and some second thoughts about just how much AI can boost the market.
Still, Citi says it's optimistic about where AI is headed in the long run.
Citi upgrades China, Yardeni lowers EM
Citi's new strategy gives China an upgrade and keeps Taiwan favored, but dials back on South Korea after a rough July, though South Korean stocks are still up 55% for the year.
Taiwan dropped 8% this month but is up 47% overall.
Yardeni Research also lowered its rating for emerging markets, citing higher oil prices, a stronger US dollar from Federal Reserve moves, and fading excitement around AI stocks in both South Korea and Taiwan.