All articles tagged with #chipmakers
Chipmakers are leading the AI rally, with Nvidia rising on strong earnings and forecasts and peers like Micron and Marvell posting big gains, while Big Tech names lag behind. The rally has pushed Nasdaq higher and chip stocks now account for a large share of market value and gains, signaling a leadership shift—though analysts caution a slowdown in AI spending could rekindle volatility.
The Nasdaq and S&P 500 opened lower as semiconductor stocks led the decline, with memory-chip names Sandisk (SNDK) and Micron (MU) among the biggest drags after weekend rumors that Apple could source from CXMT; other chipmakers softened, while consumer staples outperformed and names like Airbnb (ABNB) and Visa (V) rose in early trading.
South Korea’s Kospi jumped as much as 14%, its biggest intraday gain on record, as renewed AI optimism lifted tech stocks. SK Hynix surged up to 28% and Samsung Electronics about 26%, aided by Chey Tae-won’s rare open-market purchase of SK Hynix shares, following a prior selloff tied to debt concerns and competition fears in AI-related equities.
South Korea's Kospi surged more than 16% as chipmaking stocks led a broad rally, boosting sentiment across Seoul's equity market amid renewed optimism for semiconductor demand and AI-related chip sales.
Micron Technology led a broad decline in chip-related equities as AI-driven trading momentum cooled, with Micron sliding about 9% mid‑afternoon after a 2.3% drop the day before, and other tech names like Sandisk, Western Digital, and AMD also tumbling, amid wider chip-sector volatility fueled by reports on China’s chipmaking equipment and ongoing AI demand concerns.
South Korea’s Kospi dropped almost 11% after heavy selling in chipmakers weighed on the market, contributing to a mixed picture for global equities as tech stocks led the rout in Seoul.
South Korea’s Kospi plunged nearly 11% on Tuesday as heavy selling of AI-related chipmakers pressured markets; Samsung Electronics and SK hynix dropped sharply, contributing to declines across Asia while U.S. futures were mixed. Analysts cited fears that AI-driven gains may be turning into a bubble and that investors are locking in profits, with the CXMT IPO and ongoing chip-industry competition cited as factors. Oil also fell as tensions eased and traders reassessed the AI rally.
Samsung Electronics and SK hynix will supply U.S. tech firms, including Nvidia, in agreements totaling about $950 billion, announced during President Lee Jae Myung’s San Francisco visit, underscoring Korea’s role in AI-focused memory chips and signaling a bright economic outlook.
Global markets fell after Moonshot unveiled Kimi K3, a powerful Chinese AI model that narrows the gap with OpenAI and Anthropic, fueling fears that open‑source AI could disrupt US incumbents and slow the AI spending rally. The Nasdaq dropped about 1.5% on Friday (S&P 500 -0.7%; Dow -60 points). Asia’s markets also fell (Taiwan down >6%, Japan about -4%). Micron slid roughly 30% from late June highs, while Alphabet and Nvidia edged lower. Oil rose as concerns over inflation persist; US gas neared $4 per gallon and June CPI showed inflation at 3.5% year over year. Investors are weighing how impactful Kimi K3 will be and whether AI hype will sustain chipmakers’ growth.
Chipmakers led by Nvidia, Micron, Broadcom, and Applied Materials are forecast to generate about $430 billion in free cash flow over the next 12 months, driven by surging AI chip demand, while hyperscalers such as Amazon, Alphabet, Meta, Microsoft, and Oracle are projected to post negative free cash flow for the first time on record — signaling a shift in AI-era capital toward hardware makers as software giants burn capital; meanwhile valuations for the Magnificent Seven have cooled relative to the S&P 500 amid concerns about AI buildout costs.
Asian equities rebounded with tech/semiconductor names rallying after a recent selloff, aided by softer U.S. payrolls which boosted expectations of Fed rate cuts later in the year and by subdued oil prices that improved risk sentiment across the region.
A rocky week for AI equities as Alphabet slides and chipmakers slump, dragging markets with no sign of a crash yet; SpaceX losses and OpenAI's delayed IPO underscore ongoing caution, though other AI players like Micron show resilience. Separately, California's proposed 5% one-time billionaire tax is shaping politics ahead of the 2028 cycle, with Gov. Gavin Newsom proposing a nationwide minimum tax on fortunes above $100 million as a counterproposal.
Nasdaq 100 futures fell about 2.8%, S&P 500 futures down around 1.4%, and Dow futures about 0.5% ahead of the open, as a rout in memory-chip makers spurred doubts about AI demand and valuations. Samsung and SK Hynix slid, Micron’s earnings due later this week, and broader AI optimism faces a reality check amid chipmakers’ weakness and surrounding market context like SpaceX declines and ongoing US-Iran oil-sanction talks.
Asian shares fell as renewed U.S.-Iran tensions revived risk aversion and a fading chip rally dragged technology names lower; Korea’s KOSPI led losses amid chipmaker declines, while Japan’s Nikkei and China’s CSI 300 dropped as inflation data underscored price pressures. Investors also awaited the U.S. CPI print as oil prices climbed on the flare-up, weighing on regional sentiment.
Chipmakers and AI-heavy tech stocks tumbled, dragging the Nasdaq 100 and S&P 500 into the red as investors booked profits on high-growth names; the QQQ fell about 3% and the SOXX about 1.6%, with Micron plunging intraday and AMD, Intel, and Marvell following; Apple slipped after WWDC, while travel stocks rose as oil prices eased.