All articles tagged with #semiconductors
Skyrocketing AI data-center demand has pushed SK Hynix and Micron above $1 trillion in market value, joining Nvidia, Amazon, Apple, Microsoft, Alphabet, Meta, and Samsung as the chipmakers rally on shortages and AI-driven demand.
U.S. stocks rose as optimism about artificial intelligence outweighed Middle East geopolitical concerns, with the S&P 500 and Nasdaq led higher by tech and semiconductor names even as a few large components pulled back.
Semiconductor stocks jump in premarket trading as investor sentiment improves, with gains across memory and chip names like Micron, AMD and Intel and uplift from the SOXL ETF, signaling broad tech strength ahead of the market open.
At the 2026 IEEE ISCAS, Huawei’s He Tingbo introduced the Tau (τ) Scaling Law, a time-based alternative to traditional geometric scaling for semiconductors and electronic systems. The approach uses LogicFolding and a multi-level, software–hardware co-design to shorten the signal time constant and boost transistor density, circuit performance, and energy efficiency across devices, circuits, chips, and systems. Huawei says it has designed 381 τ-based chips, with Kirin models slated to adopt LogicFolding in Fall 2026, and envisions future high-end chips reaching ~14 Å density by 2031, while calling for open collaboration across the industry.
Huawei says it has a new pathway, dubbed LogicFolding, to shrink its gap with leader TSMC by aiming to mass-produce 1.4‑nanometer chips by 2031, a move that could challenge the need for ASML’s advanced EUV equipment since TSMC has said it will mass-produce 1.4nm by 2028. If Huawei can scale this, it would mark a significant step in China’s push for semiconductor self-sufficiency and shorten the industry lead held by TSMC, though the plan hinges on large‑scale manufacturing capabilities and technological breakthroughs.
Samsung Electronics rode a surge in AI demand to become a $1 trillion company, but tens of thousands of memory-chip workers pressed for a bigger share of the profits; a tentative deal was reached hours before a planned strike to scrap a bonus cap and allocate about 10.5% of operating profits to bonuses for the semiconductor division, a win that still requires union member approval and could disrupt production if votes fail. The dispute underscores broader wage-gap tensions as rivals like SK Hynix boost pay amid tight AI memory supply that could affect data-center growth.
Samsung Electronics’ 70,000-strong union and management struck a late pay deal, averting a strike that could have disrupted Korea’s economy and the global AI hardware boom; after ministerial mediation, the agreement was reached around 10:30 pm - just 90 minutes before the deadline. The package grants semiconductor workers 10.5% of operating profits (up from 10%), adds a new bonus pool split by division and unit performance, and delivers an average wage rise of 6.2%, with bonuses tied to annual operating profits of 200 trillion won (2026–2028) and 100 trillion thereafter. Shares rose about 8%, and a union vote by May 27 will confirm the deal; some workers felt the agreement could have been stronger. The deal underscores Samsung’s central role in Korea’s exports and the global AI supply chain.
Samsung Electronics’ shares jumped more than 6% after its labor union suspended an 18‑day strike and called for a May 22–27 vote on a tentative wage deal, a provisional accord that ties bonuses to operating profits and includes a chip-division payout, though officials say final agreement remains far off and negotiations continue amid broader semiconductor market optimism.
NVIDIA posted a first-quarter earnings beat thanks to strong demand for AI accelerator chips used in data centers, signaling continued momentum for the company amid the AI chip boom.
Nvidia beat revenue expectations and announced an $80 billion stock repurchase program, signaling strong demand for its AI GPUs and confidence in the company’s growth outlook as AI adoption accelerates.
Nvidia heads into its earnings report with China as the big wildcard: CEO Jensen Huang says the Chinese market should open to U.S. chip firms over time despite export controls and a stalled Trump–Xi deal on AI chips. China’s AI chip market was a major growth driver, but sales have been hit by policy shifts, though a few Chinese buyers have been cleared to purchase Nvidia’s H200s (none shipped yet). The street remains bullish, with a Strong Buy consensus and an average target of about $282.35, implying roughly 27% upside. Investors will be watching for any updates on China’s openness as potentially as influential as the earnings figures themselves.
Stocks fell as memory and semiconductor names led a tech-driven slide, with information technology the day’s worst sector and five of the Magnificent 7 dropping; Seagate’s capacity warnings pulled memory peers lower while energy outperformed. Hedge fund activity around AI infrastructure names sparked big moves in Lumentum and Coherent after exits; T1 Energy surged on a disclosed 3.6% stake, LiveRamp jumped on a $2.17 billion all‑cash buyout by Publicis, and Berkshire Hathaway rotated out of UnitedHealth while adding Macy’s and Delta. Bitcoin and Ethereum wobbled as ETFs faced outflows, underscoring caution amid AI spending and supply dynamics.
An investor known as Millennial Dividends sees Micron (MU) riding an AI-driven memory demand boom into 2027, with strong near‑term upside but a potential peak by 2028 as capacity expands. MU is sold out through 2027 and supply‑constrained, yet its forward P/E (~12.9x) remains below long‑run averages, suggesting more upside, though price targets imply downside from the rally. The article notes a Strong Buy stance from the investor alongside a bullish Street consensus that could understate risk of overcapacity.
Micron Technology is benefiting from surging AI-related memory demand, guiding for about $33.5 billion in quarterly revenue with an ~81% gross margin as demand outpaces supply. Top investor Keithen Drury is bullish, noting Micron has only two-thirds of demand covered by current capacity and that data-center memory demand could grow from $35 billion in 2025 to $100 billion by 2028, suggesting the shortage may persist for years. The stock enjoys a strong buy consensus on Wall Street, though 12-month targets still trail the current price.
Micron Technology has surged about 154% year-to-date on AI-driven memory demand, but analysts are divided on how much further MU can rise. Bulls like D.A. Davidson’s Gil Luria with a Buy and a $1,000 target and Bank of America’s Vivek Arya with a $950 target point to strong mid-term demand and pricing support, while Bernstein’s Mark Li ($510) and TD Cowen’s Krish Sankar ($660) warn of downside risk after a powerful rally. Overall, the street shows a Strong Buy with an average target around $608 (about 16% below current levels), suggesting the upside is increasingly priced in as investors weigh AI-driven memory demand against potential margin headwinds.