The AI trade is expanding beyond core semiconductor players, with memory chip suppliers like SK Hynix becoming central to the narrative
Early and rising — still a small slice of coverage but gaining +1pp over the last 3 days. This is where attention may be headed next.
The AI trade is broadening beyond core semiconductor companies to include memory chip suppliers like SK Hynix, which are becoming central to the investment theme. This expansion is driven by increased capital expenditure from companies like Micron Technology, indicating growing demand for memory chips in AI applications.
The diversification of the AI trade into new sectors can drive capital flows into previously underrepresented areas, potentially leading to revaluation of companies involved and influencing broader market dynamics as investors seek to capitalize on emerging growth opportunities.
"Spending by chip companies is at the center of that debate. In the latest capital expenditure announcement, Micron Technology Inc. said it plans to increase spending on new plants in the US to $250 billion to help meet demand fueled by the artificial-intelligence boom."
"Broadcom rallied 4.8% after Apple said it plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with the chipmaker. Nvidia rose 3.65% after the Information reported that China plans to allow its top AI firms to buy a limited number of the company's H200 chips."
""This is a positive indicator of the AI trade, with Korea chip plays now front and center," Tech analyst Dan Ives told CFO Daily in an email about SK Hynix's move to list on the Nasdaq. "The AI trade is spreading.""