Key facts
- Nvidia CEO Jensen Huang confirmed Samsung, SK Hynix, and Micron are certified for HBM4 memory deliveries starting Q3 2026.
- TSMC CEO C.C. Wei stated that global chip supply will lag AI-driven demand for years.
- Megaport is raising A$827.3 million ($594 million) for AI cloud infrastructure.
- Megaport secured four new AI infrastructure contracts worth A$458.9 million.
- BCA Research warns of an AI-driven earnings bubble and crashing hyperscaler free cash flow.
- Air Liquide will invest $233 million in South Korea for SK Hynix AI chip production.
- AI-selected stocks have gained 54%, outperforming the S&P 500 rally.
- The AI stock rally is creating U.S. millionaires at the fastest pace in four years.
- Intel unveiled its Crescent Island AI GPU for the inference market.
- Intel plans to launch its first AI data center chip by year-end.
The artificial intelligence sector is experiencing a significant boom, with Nvidia CEO Jensen Huang articulating the market trends driving this growth and calling AI PC chips the 'reinvention of the computer.' Nvidia is actively developing AI chips for PCs and competing in data centers, facing competition from Intel, which unveiled its Crescent Island AI GPU and plans a data center chip by year-end, and AMD, also a player in the AI data center chip market. Huang also confirmed that Samsung, SK Hynix, and Micron have been certified to supply HBM4 memory for Nvidia's Vera Rubin AI accelerator platform, with deliveries slated to begin in Q3 2026, and SK Hynix is anticipated to hold the largest volume share.
Despite a slight premarket dip, Nvidia's stock remains a focal point as the AI rally continues, with semiconductor stocks generally rallying while software stocks decline, marking a record divergence. TSMC CEO C.C. Wei forecasts that global chip supply will fall short of AI-driven demand for years, even with manufacturing expansions, and noted that meeting U.S. customer demand with U.S. production will take a 'very long time.' TSMC has purchased ASML's High-NA EUV machines, with deployment dependent on economic viability. Meanwhile, Megaport is raising A$827.3 million ($594 million) to build a global AI inference cloud and has secured four new AI infrastructure contracts totaling A$458.9 million, intending to use the funds for capital expenditures including Nvidia GPUs and an on-demand GPU pool. Air Liquide is investing $233 million in South Korea to supply gases for SK Hynix's new AI chip packaging and testing facility in Cheongju.
Concerns are emerging about the sustainability of the AI boom. BCA Research warns of an 'earnings bubble' driven by potentially unsustainable profit growth from AI demand, noting a significant crash in aggregate free cash flow among hyperscalers and cautioning that earnings bubbles can be more damaging than valuation bubbles if they lead to excess capacity. Norges Bank Investment Management CEO Nicolai Tangen has directly questioned IBM CEO Arvind Krishna about whether artificial intelligence constitutes a bubble. The rapid wealth generation from AI stocks has created new millionaires in the U.S. at the fastest pace in four years. Stocks selected by AI have outperformed the S&P 500, gaining 54% during its rally. Fund managers are diversifying portfolios after significant gains in emerging market players like SK Hynix, TSMC, and Samsung, which have reached investment limits for some funds. One fund has initiated a smaller position in an AI chipmaker, allowing for future increases.