AI trade loses steam as infrastructure boom faces reality check
Record earnings, rising competition and concerns over slowing AI spending are forcing investors to reassess one of the market’s biggest trades.
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Summary
- Samsung delivered record quarterly profit, yet shares fell nearly 7%, while SK Hynix also declined ahead of its U.S. listing, signaling that expectations for AI chipmakers may have become too optimistic.
- At the same time, China’s Zhipu is pursuing custom AI chips to support its fast-growing open-source models, reinforcing the view that more efficient AI and lower-cost infrastructure could challenge the dominance of US frontier models.
