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,…
As Democrats secured control of Congress in the recent midterm elections, the so-called "blue wave" phenomenon is anticipated to have a dampening effect on memory chip prices and demand. This development raises questions about whether Samsung Electronics and SK hynix will be able to maintain their impressive earnings streaks.
In Wednesday's New York trading session, shares of CoreWeave and Nebius both experienced significant declines, falling by 9.9 percent and 6.7 percent, respectively. CoreWeave and Nebius are companies that offer artificial intelligence (AI) computing services on a rental basis. Other data center operators, such as IREN and Hut 8, also suffered sharp losses, with their stocks dropping by 11.2 percent and 23.2 percent, respectively.
The memory chip and storage sectors experienced considerable setbacks as well. SK hynix's shares in the American depositary receipts fell by 5.1 percent, while SanDisk experienced a 7.9 percent decrease. Micron Technology and Western Digital also witnessed declines, with their stocks falling by 7.0 percent and 6.8 percent, respectively.
The market reaction seems to be driven by investors' apprehensions that the election of Democratic governors in states like Texas, Ohio, and Georgia might lead to stricter regulations and delays in the construction of new data centers. This could potentially curb the growth of the memory chip and storage industries.
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
