Robotics and space stocks could face some of the heaviest losses during a future market downturn, according to a warning from KB Securities.
The brokerage compared the current surge in thematic investing with the final phase of the U.S. dot-com bubble. It argued that highly valued sectors with limited current earnings may be particularly vulnerable.
Dot-Com Crash Offers a Warning for Investors
KB Securities analyst Euntaek Lee said the dot-com crash did not affect every stock at the same time.
Instead, the collapse developed through several waves. Certain companies began falling months before the broader Nasdaq reached its peak.
According to Lee, this pattern could help investors identify which sectors face the greatest risks in today’s market.
Future-Focused Stocks Fell First
During the dot-com era, companies whose valuations depended heavily on future growth expectations were among the first to decline.
These businesses often lacked strong near-term cash flows. However, investors had assigned them high valuations based on expected future profits.
Companies such as AOL, Yahoo and Qualcomm began losing value as early as January 2000. Their declines started roughly three months before the Nasdaq reached its peak.
Capital Spending Concerns Triggered the Next Wave
A second wave of losses affected companies whose growth depended on aggressive capital expenditure plans.
KB Securities believes similar risks are now emerging across several popular thematic sectors.
The brokerage highlighted power, robotics and space stocks as potential examples. Many companies in these industries still generate limited earnings, while their expected profitability may remain years away.
Market Turbulence Exposes Robotics and Space Risks
KB Securities pointed to market volatility in May as an early indication of these risks.
During a period of pressure linked to a labor strike at Samsung Electronics, robotics and space stocks recorded greater volatility than Samsung itself.
The brokerage said this reaction showed how quickly speculative thematic investments can come under pressure when market sentiment weakens.
Semiconductor Stocks May Be More Resilient
In contrast, KB Securities expects semiconductor companies to be better positioned during a broader market downturn.
Many leading chipmakers already generate substantial revenue and profits. As a result, their valuations rely less heavily on distant growth expectations.
Lee argued that companies capable of delivering real earnings are likely to survive the current market rally for longer than more speculative businesses.
Based on that reasoning, semiconductor stocks could be among the strongest candidates to withstand a potential correction.
