The AI-driven rally in U.S. stocks appears to be taking a pause, with momentum shifting to South Korea. On May 11, the KOSPI index surged 4.32% to 7,822.24 points, driven by retail investor FOMO and significant gains in semiconductor stocks like SK Hynix, which jumped 11.98% in a single day. This surge coincided with a Nomura report predicting a shift in AI trading dynamics from the U.S. to Korea.In the U.S., the AI rally has been characterized by a short squeeze and institutional rebalancing, but these forces are nearing their limits. The S&P 500 has risen approximately 16.6% over 28 trading days, but future gains may depend more on retail investor sentiment. Meanwhile, Korean stocks, particularly in the semiconductor sector, are benefiting from increased overseas capital inflows, as investors seek exposure to AI-related growth. The KOSPI's recent performance underscores its role as a high-beta extension of the U.S. AI narrative, though it remains vulnerable to shifts in U.S. tech stock performance and global economic conditions.