According to Bloomberg, signs of recovery in smartphone and computer demand have yet to provide the next tailwind for chip stocks as they languish below the heights of this year’s artificial intelligence rally.
Earnings reports from Intel Corp. and Samsung Electronics Co. were optimistic, indicating the worst may be over for electronics end-markets. Taiwan Semiconductor Manufacturing Co. was similarly positive on demand for traditional chips while also providing further evidence that the boom in cutting-edge AI tech will continue.
“As macroeconomic factors could shake up the markets, it has become tough for participants to muster up courage. Stock prices will move with high volatility between optimism and pessimism for a while,” Lee Seung-Woo, a Korea chip sector analyst at Eugene Investment and Securities, explained.
In its earnings call, Samsung said memory chip prices will rise in the current quarter, and overall demand will increase with further AI development. Furthermore, not everyone is convinced it’s time to buy more shares of memory makers.
