AI Boom Drives Global Chip Industry to US$200B Gain
Chinese technology companies have witnessed remarkable growth, boosted by government backing and advancements in artificial intelligence (AI). This surge has sparked a global rush among investors seeking exposure to AI technology, driving up valuations of infrastructure providers and start-ups alike.
The global chip industry has been a significant beneficiary of this trend. Major semiconductor indices saw their combined market capitalization swell by over US$200 billion in a single trading session. South Korean chip stocks, such as SK Hynix Inc and Samsung Electronics Co, surged to record highs following OpenAI's deal with Broadcom and investor enthusiasm.
OpenAI CEO Sam Altman is set to meet with Taiwan Semiconductor Manufacturing Co (TSMC) and Hon Hai Precision Industry Co, further fueling speculation about potential collaborations. Analysts attribute this tech momentum to 'fear of missing out' (FOMO), despite some concerns about a potential bubble. Meanwhile, Intel shares have climbed following reports of talks to add AMD as a customer for its manufacturing business.
OpenAI's record US$500 billion valuation and deals with South Korean chipmakers have contributed to the bull run. Despite concerns about mainstream AI services and stretched valuations, investors remain optimistic about the upside potential for tech shares. As AI continues to advance, so too does the demand for the technology's key components, driving growth in the global chip industry.
