US midterm 'blue wave' puts pressure on memory chip demands
With the U.S. Democrats taking control of Congress in the midterm elections, the "blue wave" is expected to cool memory chip prices and demands, casting doubt on whether Samsung Electronics and SK hynix can sustain their record-breaking earnings streaks. In the New York trading session that ended Wednesday (local time), shares of CoreWeave and Nebius fell 9.9 percent and 6.7 percent,…
The U.S. midterm elections resulted in Democrats gaining control of Congress, leading to expectations that the "blue wave" will alleviate pressure on memory chip prices and demands. This shift in political power may cause doubt regarding the ability of Samsung Electronics and SK hynix to maintain their impressive earnings streaks.
In the New York trading session that concluded on Wednesday, shares of CoreWeave and Nebius experienced significant declines, falling by 9.9 percent and 6.7 percent, respectively. Both companies are involved in providing artificial intelligence (AI) computing capacity on a rental basis.
Data center operators IREN and Hut 8 also suffered losses, with their stocks dropping by 11.2 percent and 23.2 percent, respectively. Memory chip and storage companies faced substantial setbacks as well. SK hynix's American depositary receipts decreased by 5.1 percent, while SanDisk experienced a 7.9 percent drop, Micron Technology fell by 7.0 percent, and Western Digital lost 6.8 percent.
The market reactions suggest that investors are concerned about potential regulatory changes and delays in project developments due to the election of Democratic governors in states like Texas, Ohio, and Georgia. These concerns may have contributed to the declines observed in memory chip and related companies.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- US midterm 'blue wave' puts pressure on memory chip demands koreatimes.co.kr
