London\u00a0\u2014\u00a0\n <\/p>\n
\n On Tuesday, investors were dumping AI stocks, worried that frothy valuations may be running away from reality. By Thursday, they were believers again.\n <\/p>\n
\n Micron Technology (MU<\/a>), a US chipmaker, posted blockbuster quarterly results Wednesday afternoon, sending its stock up by more than 16% in pre-market trade Thursday.\n <\/p>\n \n The company reported a surge in profit during its third quarter to $28.2 billion \u2013 almost 15 times more than what it made during the same quarter a year ago. Revenues soared 346% over the same period.\n <\/p>\n \n Micron is a maker of memory semiconductor chips, a type of chip used by AI companies to run their models, which are in short supply<\/a> globally. Micron said in its results that its customers had committed $22 billion to secure supplies of its chips.\n <\/p>\n \n It comes after Micron\u2019s stock fell 13% on Tuesday, part of a global sell off<\/a> of AI and AI-adjacent companies. The level of volatility is a testament to how much investors have riding on the industry \u2013 the slightest indication that companies may not deliver their promised returns can prompt a mass exodus from stocks.\n <\/p>\n \n The sell off didn\u2019t appear to be triggered by anything specific. Some market analysts pointed to worries sparked by Google (GOOG<\/a>) and SpaceX (SPCX<\/a>) falling somewhat sharply the previous day while others suggested that investors had been spooked by likely forthcoming rate hikes by the Federal Reserve.\n <\/p>\n \n On Thursday, in the US, the tech-heavy Nasdaq and the S&P 500 were up 2.15% and 0.75% respectively in pre-market trade while the Dow was pointing up by 0.3%.\n <\/p>\n \n Europe\u2019s benchmark Stoxx 600 index was up 0.6% by early afternoon local time. In Asia, Japan\u2019s Nikkei 225 index closed up 4.6% while South Korea\u2019s Kospi finished 5.4% higher. The latter tumbled 10% Tuesday, tripping a circuit breaker that prompted a 20-minute cooling off period.\n <\/p>\n \n On Tuesday, SK Hynix and Samsung, two of the world\u2019s leading memory chipmakers<\/a>, tumbled more than 12%, dragging the rest of South Korea\u2019s stock market down with them (the two chipmaking giants make up about half of the Kospi\u2019s total market value).\n <\/p>\n \n But SK Hynix\u2019s stock shot up 13% on Thursday after the company disclosed plans<\/a> for a listing on the US Nasdaq. SK Hynix, along with Micron, are members of the growing club<\/a> of AI companies with $1 trillion-plus valuations.\n <\/p>\n","protected":false},"excerpt":{"rendered":"London\u00a0\u2014\u00a0 On Tuesday, investors were dumping AI stocks, worried that frothy valuations may be running away from reality.…\n","protected":false},"author":2,"featured_media":726979,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":["post-726978","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/726978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=726978"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/726978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/726979"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=726978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=726978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=726978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}