Michelle Huynh was a teenager when she promised her migrant parents she would become a millionaire by 30. Now 26, the Australian sales executive is betting big on tech stocks to make good on what she calls “a somewhat silly promise.”
With more than a third of her savings in technology shares, Huynh saw that part of her portfolio jump by 50% – or A$31,000 (£16,100) – by mid-July. But the gains have since shrunk to around A$22,000 as the sector enters what she describes as a “wild moment.”
“Young investors chase fortune in volatile AI-driven tech stocks, with gains and circuit-breaker halts in South Korea.”
“Times are so different and investing has become a necessity,” says Huynh, whose parents do not speak English. “It feels like our purchasing power is shrinking. This is the only way to combat that.”
The frenzy around artificial intelligence has driven a surge in tech stocks, drawing in ordinary investors – many in their 20s and early 30s – even as analysts warn the fervour may be overblown. Social media and marketing campaigns have fuelled the excitement, says Glenn Tan of advisory firm Providend.
In the US, the tech-heavy Nasdaq has risen about 10% this year; Japan’s Nikkei 225 is up more than 20%. But volatility is most extreme in South Korea, where Seoul’s Kospi index – home to chipmakers SK Hynix and Samsung Electronics – jumped more than 50% since January, only to plunge from a record high above 9,000 points in June to around 6,500.
The rally has created an army of retail investors known locally as “ants.” “I could maybe count with my hands the number of people who aren’t investing today,” says 30-year-old U Chan Lee. “Even stay-at-home mothers, like my mum, who has never been interested in the stock market, are now interested.”
But the wild swings have triggered circuit breakers seven times this year – halting trading after an 8% drop – and raised fears about investors borrowing money to bet on stocks. South Korean authorities have taken steps to curb the practice.
Lee sold many of his shares last year when the Kospi surged, worried the market was becoming “too overheated.” Huynh says she is prepared for the volatility, viewing her investments as a long-term bet. Whether the AI boom delivers on its promise – or leaves young investors burned – remains the unanswered question.