Coronation Fund Managers, the South African firm overseeing roughly $47 billion in assets, has started pulling back from the semiconductor names that defined the AI trade. The firm reduced its positions in TSMC and SK Hynix, redirecting capital toward Indian equities in what amounts to a quiet vote of no-confidence in current AI stock valuations.
The reasoning is straightforward: expectations for AI-related stocks have climbed to levels that are, in Coronation’s view, nearly impossible to beat. When the bar is set that high, even strong earnings can disappoint.
The AI valuation problem
TSMC and SK Hynix have been two of the biggest beneficiaries of the generative AI boom. TSMC fabricates the most advanced chips on the planet, and SK Hynix dominates the high-bandwidth memory market that AI accelerators depend on.
SK Hynix raised $26.5 billion through a US ADR listing in July 2026, marking one of the largest foreign listings in American market history. That capital raise signals ongoing appetite for AI infrastructure on the supply side. But for existing shareholders, the question shifts from “is demand real” to “is this price rational.”
