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KB Securities' E.T. Lee and D.E. Lee said that although the AI boom has kept profit expectations for semiconductor companies elevated, the pullback in South Korean chip stocks may partly reflect investors' doubts about earnings sustainability. Shares of Samsung Electronics and SK Hynix fell for a fifth consecutive trading session. "Investors still seem to view semiconductors as a cyclical industry and remain skeptical about the sector's ability to consistently generate profits," the two analysts wrote in a report. They said that while supply bottlenecks can drive profit surges during boom periods, their eventual easing could lead to excess inventory and overinvestment. They added that similar patterns also emerged in industries such as post-pandemic diagnostic test kits, masks, toilet paper and container shipping.