Foreign media have issued warnings that Nvidia CEO Jensen Huang's market intervention is fueling an artificial intelligence bubble.

British economic weekly The Economist reported, "CEO Jensen Huang is funding the AI ecosystem and intervening in the market like a central bank," adding, "The South Korean stock market could be hit the hardest."

It further pointed out, "The deeper CEO Huang's intervention becomes, the more severe the shock will be when the bubble bursts."

The Economist specifically highlighted the recent sharp drops in Samsung Electronics' and SK Hynix's stock prices as precursors to the collapse of the global stock market bubble.

The analysis suggests that concerns over the so-called "peak out," meaning memory chip prices have reached their peak, have spread and dragged down the stock prices of the two leading giants.

The Economist cited structural vulnerabilities within the South Korean market as the primary cause of heightened stock market instability.

It directly criticized South Korea as "a giant experimental ground combining the extremes of state capitalism and market speculation."

It explained that after the emergency martial law situation, the government stepped in to boost the stock market, triggering a retail investment craze. This, combined with single-stock leverage ETFs permitted in late May, sparked a vicious cycle of massive forced liquidations and account closures during stock price declines, maximizing market volatility.

It further diagnosed that even if the two semiconductor giants rake in massive amounts of cash, a structure where profits are concentrated only in specific stages of the supply chain is difficult to sustain for long.

It also presented fierce pursuits by Chinese memory makers and the possibility of long-term contract defections in the event of a future economic recession as key risk factors to watch out for.

Bloomberg also warned on July 30, "The recent KOSPI decline is the tip of a giant iceberg," and "Concerns related to the AI industry could spread beyond South Korea to the rest of the world."

(Reported by Lee Hyeon-yeong | Video by Seo Byeong-wook | Graphics by Yook Do-hyun | Produced by SBS Digital News)