A global chip stock sell-off deepens after Broadcom's CEO likened AI investing to a casino, with Samsung down as much as 8.8%, SK Hynix 9.2%, and Micron 4% (Financial Times)
Declines for Samsung and SK Hynix drag Kospi sharply lower as investors fret over scale of AI investment
A global sell-off in chip stocks has deepened following comments from Broadcom CEO Hock Tan, who likened AI investing to a casino, according to the Financial Times. The Financial Times reports that Samsung shares fell as much as 8.8%, SK Hynix dropped 9.2%, and Micron declined 4%. The declines for Samsung and SK Hynix have caused the Kospi to fall sharply as investors express concern regarding the scale of AI investment.
Speaking at a financial conference in Singapore, Hock Tan and Intel CEO Lip-Bu Tan identified capital access as a potential challenge for the artificial intelligence sector, according to SiliconANGLE. While demand for certain data center chips currently exceeds supply, Hock Tan predicted that the shortage would ease by 2028 or 2029, though he believes the imbalance between computing capacity demand and industry supply could last into 2030.
Addressing the high costs of training large language models, Hock Tan specifically noted that OpenAI Group PBC is currently losing money due to heavy spending on training. SiliconANGLE reports that Broadcom assisted the AI developer with the design of its first custom inference chip earlier this year.
Brief written by urgent.news from Techmeme, SiliconANGLE — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
