2 weeks ago

AI Stocks Rebound as Memory Chip Demand Drives Global Rally

AI Stocks Rebound as Memory Chip Demand Drives Global Rally
After weeks of shaky ground, AI related stocks are on the rise again—Here's what Elon Musk's post indicates about trend · livemint.com

Some companies make special computer parts called chips that help computers think.

For two months, the money value of these companies went down.

People were worried that prices were too high and that AI might not be worth all the money.

Now, those companies are doing well again, and their stocks are going up.

Stock markets in Japan and South Korea had very big gains.

A very famous inventor named Elon Musk said something that made people feel more confident about AI.

He agreed that computer memory will be very important as AI gets smarter.

Companies that make memory chips are selling lots of them.

The leader of a big chip company thinks there won't be enough chips for a very long time.

Big companies like Microsoft and Amazon are spending huge amounts of money to build giant computer buildings.

Some people still worry that this could be a bubble that might pop.

Key facts

Nikkei 225 weekly gain
4.7%
KOSPI 10-day gain
22%
AI hardware debt (Oracle, Microsoft, Meta, Amazon, Alphabet)
Nearly $350 billion
Memory chip makers leading rally
SanDisk, SK Hynix, Samsung, Micron
SK Hynix CEO
Kwak Noh-Jung
Expected chip shortage duration
Likely beyond 2030
Musk's reply on memory demand
"Few realize this"
Report source
Bloomberg

Quotes

Hitoshi Asaoka

Chief strategist, Asset Management One

“"A huge amount of hyperscaler money is flowing into hardware. That is translating into extremely strong sales and profit growth for hardware companies."”
livemint.com

SK Hynix CEO Kwak Noh-Jung

CEO of SK Hynix

“"The AI boom has redefined the memory chip business for good."”
livemint.com

Peter Diamandis

Entrepreneur and founder of X PRIZE Foundation

“"Memory, not compute, is the rate limiter of the Agentic Era."”
livemint.com

Sources

Related news