South Korea’s major IT sectors are showing a mixed picture lately. Investors are cautious about quantum computing and metaverse stocks after they skyrocketed earlier, leading to a cooling of enthusiasm. Despite this, expectations for performance improvements remain high, drawing in bargain-hunters.
The stock prices of US-based quantum computing companies have fallen significantly this year. IonQ’s stock price has dropped from $50 to $23, a 54% decrease, while Rigetti and Quantum Computing Inc.’s stocks are down over 60%. This underperformance is affecting the revenue of products containing these stocks, including the only quantum computing ETF listed on the domestic market, KIWOOM U.S. Quantum Computing.
The struggle of quantum computing companies to commercialize technology and establish a solid revenue model is affecting investor sentiment. Jensen Huang, CEO of NVIDIA, recently stated that practical quantum computers won’t emerge for 20 years. This statement led to IonQ’s stock dropping by 40% in one day.
Similarly, metaverse stocks are experiencing a downturn. Many related ETFs were launched during the 2021 metaverse boom but have since been delisted due to capital outflow. The Korea Exchange reports that two such ETFs were removed this year, while individual investors continue to show interest in AI and secondary batteries.
Investors are still optimistic about AI and battery technology, with bargain-hunting remaining steady. Individual investors purchased Tesla’s 2x leveraged product worth 300 billion won and Palantir’s single stock worth 130 billion won during the recent market downturn. The performance improvement of AI semiconductors and data analysis corporations has led to capital inflow.
The secondary battery sector is expected to see growth despite short-term stock price adjustments. Individual investors have purchased stocks worth 154.5 billion won in ECOPRO BM, a leading secondary battery company, making it the fourth highest net purchase this week. Samsung SDI and LG Energy Solution are also seeing considerable net purchases.
As global automobile corporations aim to reduce internal combustion engine vehicle production by 2030, there is significant growth potential for the battery industry. Experts expect companies like IonQ and Palantir to perform well based on their performance.
Source: https://biz.chosun.com/en/en-finance/2025/03/04/2OZP6B3EBZH67CESVARAV753VY