AI chip stocks lose over $1 trillion in five-day selloff
Twenty of the biggest AI and semiconductor companies shed more than $1 trillion in market value over five days, with memory makers hit hardest.
More than $1 trillion in market value has been wiped from 20 of the largest AI and semiconductor companies over five days, as investors sold off stock across the sector, according to pcgamer.com.
Nvidia's share price fell about 8% across the five-day stretch. AMD dropped 13% and Intel nearly 15%. Memory makers fared worse: Samsung Electronics fell nearly 20%, SK hynix 18% and Micron more than 15% over the same period.
The decline comes as the memory shortage continues to shape the sector. Acer's CEO said it is impossible for the shortage to last until 2030, while TSMC's next-generation Arizona fab is reportedly fully booked before being built.
Supply questions remain
A column in South Korea's Maeil Business Newspaper suggested the memory supply crisis may reverse into oversupply by 2029. CXMT, meanwhile, has been stocking up on western DUV machines and is estimated to match Micron in DRAM manufacturing capabilities this year, and recently claimed a breakthrough chip architecture that increases memory density.
The CEOs of Intel and Broadcom recently said financing could become a bigger hurdle for the AI industry than securing memory or electricity supply. Tech analyst Dan Ives told CNBC that a demand signal, not an increased interest rate signal, would change his view.