Surging chip stocks are warping stock markets globally.
US-based Micron Technology on Tuesday hit a $1 trillion market value on strong demand for its memory chips; the tech-driven surge pushed US stock indices to new highs, despite the latest US strikes on Iran.
Chip giant TSMC’s rally largely drove Taiwan to become the world’s fifth-largest equity market this week, surpassing India, seen as an AI laggard.
The investor enthusiasm masks underperformance elsewhere; emerging market stocks are tanking if Asia’s three largest chipmakers are excluded.
The insatiable AI-fueled demand for chips is also posing geopolitical dilemmas.
US firms seeking new supply sources are wary of turning to China’s booming memory chip sector because of Washington’s export controls, The Wire China reported.
