US and South Korean chip stocks experience a pullback, with funds flowing towards super large cloud service providers

As of Wednesday's close, chip stocks in the United States and South Korea have fallen more than 20% from their recent highs. Samsung reports profit growth and strong guidance, but investors are concerned about excessive spending on AI infrastructure. US President Trump suspends the memorandum of understanding between the US and Iran, raising geopolitical risks. Morgan Stanley CIO Mike Wilson predicts a pullback in chip stocks as funds are flowing from chip stocks to undervalued ultra large scale cloud service providers.