Young Investors Pile Into Tech Stocks as AI Boom Delivers 50% Gains and Sharp Swings
Updated
Updated · bbc.co.uk · Jul 20
Young Investors Pile Into Tech Stocks as AI Boom Delivers 50% Gains and Sharp Swings
3 articles · Updated · bbc.co.uk · Jul 20
Summary
Young investors in Asia-Pacific are concentrating savings in tech shares, chasing AI-driven returns even after violent pullbacks; Australian investor Michelle Huynh saw her tech holdings rise A$31,000 this year before gains eased to about A$22,000.
Shrinking purchasing power, social-media hype and fear of missing out are helping drive the rush, while many investors in their 20s say they can tolerate volatility because they are investing for the long term.
Market moves have been extreme: the Nasdaq is up about 10% this year, Japan's Nikkei more than 20%, and South Korea's Kospi more than 50% since January despite dropping from above 9,000 in June to around 6,500.
That turbulence has exposed the risks of leveraged retail trading, prompting South Korean authorities to curb borrowing after seven trading halts this year when the Kospi fell 8%.
Analysts say AI enthusiasm may be outrunning profits, warning that retail investors often buy the most visible winners and underestimate how painful valuation resets can be.