AI Meltdown Prompts Froth Warning on Korean Index, SOXX

The recent selloff in AI stocks and the Korean Index is not surprising, according to a Seeking Alpha author who had warned of excessive froth weeks ago. The author said the Korean Index had become too frothy, with leverage and speculation building up. Positioning was overly bullish on AI stocks, including the Semiconductor Index (SOXX). The current meltdown, while painful, represents a correction of that excess, the author argued. The author urged investors not to waste the meltdown, implying it could present opportunities for those with a longer horizon. The author had no position in the stocks mentioned.