Chip stocks have seen a significant rebound in recent days, driven by positive outlooks from US firms Micron Technology and Qualcomm. The South Korea-based Kospi index, which tracks the performance of tech-heavy companies, surged by around 5% in early trade on Thursday. SK Hynix, a leading chip manufacturer, saw its shares jump by around 10% by mid-morning. This rally comes after a period of sharp declines for global tech stocks, which were sparked by concerns over the high valuations of AI-related shares. However, these worries eased late Wednesday when Micron announced that its customers had committed to spend $22 billion on its chips. Additionally, the company forecast quarterly profit and revenue well above expectations, sending its shares 12% higher in after-hours trade. According to Michael Landsberg, Chief Investment Officer at Landsberg Bennett, the AI boom has been transformational for memory chip makers like Micron. He explained that the AI boom has created a strong demand for these chips, which are essential for making AI work faster and better.
Qualcomm also made a significant announcement after the bell, stating that it expected $15 billion in sales for its data center business by 2029. This move marks a strategic shift for the company, as it seeks to move beyond its core market of chips for smartphones and focus on AI. Furthermore, SK Hynix revealed plans for a major Wall Street stock listing, which could raise close to $30 billion. This would make it the second biggest share sale ever, following the record IPO by Elon Musk's rocket firm SpaceX.
Chip stocks have seen a significant rebound in recent days, driven by positive outlooks from US firms Micron Technology and Qualcomm.
