AI Semiconductor Industry Global Fire Market Reports In The US, Japan, And Europe
AI semiconductor industry ‘global fire market’… Reports in the US, Japan, and Europe are rising one after another. After Nvidia’s earnings announcement, major global stock markets from North America, Europe, and Asia rushed to set new record highs. This is the result of NVIDIA’s strong performance, raising expectations for the artificial intelligence (AI) semiconductor industry, and causing the stock prices of global technology companies to soar. However, the domestic AI semiconductor-related stock rally only has a ‘glittering effect’ and appears to be excluded from the global AI rally.
On the 22nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 39,069.11, up 1.18%, and the Standard & Poor’s (S&P) 500 closed at 5,087.03, up 2.11%. They all broke record highs. The NASDAQ index, centered on technology stocks, also closed 2.96% at 16,041.62. At one point during the day, Nasdaq exceeded the 16,057-mark recorded on November 19, 2021. It is analyzed that expectations for AI were raised by the fact that NVIDIA announced after the market closed the previous day that it recorded earnings per share (EPS) of $5.15 on sales of $22.1 billion in the fourth quarter of last year, up 265% and 769%, respectively, compared to the same period last year.
Thanks to this, stock prices of AI semiconductor companies rose, with Super Microcomputer and AMD soaring 32.87% and 10.69%, respectively, pushing up the entire stock market. European and Asian stock markets also soared due to the ‘Nvidia effect’. STOXX Europe 600, a stock index of 600 companies in 17 European countries, rose 0.82% and set a new record high, while Germany’s DAX index and France’s CAC index rose 1.47% and 1.27%, respectively, and set new record highs. In Asia, Japan’s Nikkei index reached its highest point since 1989.
As stock markets in major countries rose, the FTSE All World Index, an index that covers stock indices in 48 countries around the world, also hit a new high. “We are seeing a moment in which high-growth, high-profit technology companies are breaking new ground,” said Michael Bayley, director of FBB Capital Partners. Hitting record highs in major stock markets aligns with the current trend, yet there is a premium to pay rather than a reflection of fair value. Describing it as a “stuck situation,” he remarked.
On the other hand, the rally of domestic AI semiconductor-related stocks had only a ‘glittering effect’. The previous day, the stock market expected that the strength of semiconductor stocks would continue for a while, but on this day, Hanmi Semiconductor and ISU Petasys fell 3.66% and 0.65%, respectively, showing a decline in their upward trend in one day. This is because foreigners and institutions showed a buying advantage, while individuals turned into net sellers, selling 5.4 billion won and 10.9 billion won, respectively, unlike the previous day. SK Hynix, which rose 5.03% the previous day and recorded a 52-week-high, also rose only 2.49%.
In the case of SK Hynix, foreigners swept up 233.4 billion won on this day, ranking it as the number one stock in net purchases, but individual investors began selling 258.3 billion won worth of stocks to realize profits, turning it into a net seller within a day.
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