Michelle Huynh, 26, started investing in 2018 after making a teenage promise to become a millionaire by the time she turned 30. The eldest daughter of migrant parents in Australia says she is trying to achieve that goal by putting her savings into the stock market, with tech stocks making up more than a third of her investments.

Huynh, who works in sales for a tech firm, says the recent technology-led rally has helped. By the middle of July, that part of her savings had risen by 50% this year, adding A$31,000 (£16,100; $21,666), though the gains have since eased to about A$22,000 as the sector moves through what she calls a “wild moment”.

She describes the promise as “a somewhat silly promise” inspired by the sacrifices her non-English-speaking parents made to raise the family. Even so, she says she is prepared for the volatility and sees her investments as a long-term bet.

“Times are so different and investing has become a necessity,” says Huynh, who works in sales for a tech firm. “It feels like our purchasing power is shrinking. This is the only way to combat that.”

The rise in tech stocks, led by companies benefiting from the artificial intelligence (AI) boom, has drawn large numbers of ordinary investors, many in their 20s and early 30s, even as some analysts warn that the enthusiasm around AI may be exaggerated. Retail investors have been swept up in the excitement, which has been fuelled by social media and marketing aimed at non-professionals, says Glenn Tan from advisory firm Providend.

How volatile has the tech rally been?

The technology-heavy Nasdaq in the US is up by about 10% this year, while Japan’s Nikkei 225 has risen by more than 20%. But many tech stocks have seen sharp moves in both directions.

That volatility is especially visible in South Korea. Seoul’s Kospi index, which includes tech heavyweights such as SK Hynix and Samsung Electronics, has climbed by more than 50% since January, drawing an army of retail investors known locally as “ants” and helping fuel active trading.

South Korean investor U Chan Lee says the trend has become nearly impossible to ignore.

“I could maybe count with my hands the number of people who aren't investing today,” South Korean investor U Chan Lee says. “Even stay-at-home mothers, like my mum, who has never been interested in the stock market, are now interested.”

The Kospi has also seen dramatic reversals. After reaching a record high of more than 9,000 points in June, it fell to around 6,500.

Trading on the benchmark index has been halted seven times this year in an effort to calm panic selling after an 8% drop. Those declines have prompted concerns about people borrowing money to invest, leading South Korean authorities to move against the practice.

Lee, 30, says he sold many of his shares last year when the Kospi surged because he worried the market was becoming “too overheated”. Since then, he has switched to buying stocks when they fall and selling them a few days later when they rise.

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Analysts say the swings highlight the risks of investing in tech. Governments and companies are pouring hundreds of billions of dollars into AI development, but sceptics question whether the technology will generate enough profit to justify such large sums.

Analyst Lale Akoner from investment firm eToro says people often bet on “optimistic outcomes” or “the most visible winners” without considering a company’s profitability.

People often make bets on “optimistic outcomes” or “the most visible winners” that are not based on a business's profitability, analyst Lale Akoner from investment firm eToro says.

Retail investors often view drops in shares as buying opportunities, treating each sell-off as a “test of conviction”, she says, but they need to be aware of “how painful valuation resets can be”.

Why are some young investors chasing the gains?

Jacqueline Choi, from South Korea, says she regrets not putting more money into shares before the Kospi’s rally and was forced to sell Hyundai Motor and Samsung Electronics shares when she needed money.

“Why didn't I go in and buy those SK Hynix stocks or extra Samsung stocks with all of my savings?” the 28-year-old now wonders.

Earlier this month, chipmaker SK Hynix debuted in New York, raising $26.5bn to become the largest ever US listing by a foreign firm. Some of Choi’s friends have used thousands of dollars of their savings to invest in stocks.

“I should really invest more, knowing that investing can earn you so much more than your everyday job,” she says.

Jacqueline Choi, 28, poses for a picture, smiling as she leans towards her left. — Image caption, Jacqueline Choi says she regrets not putting more money into shares

Singaporean business student Shyan Lim is a strong believer in AI-related shares and has put about three-quarters of his savings into tech stocks. The 24-year-old says there have been many “uneasy” days when his investments dropped by as much as 10%, but he is still willing to take the risk.

So far, the strategy has worked. In October, he invested 23,000 Singapore dollars (£13,185; $17,845) in chipmakers Intel and Micron. Those shares are now worth about 100,000 Singapore dollars.

“It feels like I'm one step closer to retirement,” Lim says. “While I'm still young I think I can take the risk. I probably won't take such positions when I'm older.”

George Lee, who recently graduated, says more than half of his investments are in tech and that he understands the disadvantages ordinary traders can face, including fewer resources.

“Investing doesn't just come down to luck, though it does play a part,” Lee says.

“As long as the fundamentals of a company don't change, I'm ready for the swings since I have time to let my shares run.”

Shyan Lim smiling for a picture with his arms crossed during a hike near a cliff — Image caption, Around three quarters of Shyan Lim's shares are in tech companies

Is every investor betting everything on tech?

No. Some young investors are keeping their exposure lower to manage the risks.

Singaporean student Ayush Deb says the sector makes up only about a third of his investments, even though that has still been difficult at times. In June, he says his memory chip-focused investments fell by more than 10% in a single day, and investment forums were full of people discussing “who got burned”.

“I've ridden the highs and lows of tech stocks but the sector is quite hard to read,” says Deb, who has invested since his late teens. “I try to cut out a lot of the noise in this industry and focus on making informed picks.”

Ayush Deb poses for a picture with his arms crossed in front of a golf course by the sea. — Image caption, Ayush Deb has about 30% of his investments in tech

Deb also says he felt “FOMO” - fear of missing out - when he was unable to buy SpaceX shares when Elon Musk’s space and AI company listed in June. The stock rose to $225 at one point but has since fallen below its $135 stock market listing price, after some analysts questioned its profit potential.

Despite the attention around SpaceX, Singaporean investor Lim says he avoids newly listed stocks so he can spend more time studying a company’s operations. He says he would take the same approach with Anthropic and OpenAI, as the leading AI developers eye $1 trillion stock market debuts.

In Sydney, Michelle Huynh, who creates her own finance-related social media content, says investing can be daunting for people entering the workforce because these skills are not widely taught in schools.

She adds that keeping up with the news is an “underrated skill” and says she has recently turned to energy and metal stocks based on what she has read, believing they will benefit from heavy investment in chip manufacturing.

“I think many young people are afraid of investing - and validly so. It can feel like gambling if you're not aware of what's going on.”

Image caption, What’s driving South Korea’s epic stock market rally?

Key Facts

Michelle Huynh, 26, started investing in 2018 and aims to become a millionaire by 30.
Her tech-stock holdings rose by A$31,000 by the middle of July, then eased to about A$22,000.
South Korea’s Kospi has climbed by more than 50% since January, after hitting more than 9,000 points in June and later falling to around 6,500.
SK Hynix raised $26.5bn in New York earlier this month, the largest ever US listing by a foreign firm.
Young investors in Singapore and South Korea say they are balancing FOMO, volatility and long-term conviction in tech shares.

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