Tech Sector Soars: Intel, ASML, OpenAI Set Records
The tech sector is booming, with investors piling into AI technologies and chipmakers seeing their valuations soar. Intel Corp. is in talks to win Advanced Micro Devices as a customer, while European chip equipment maker ASML Holding NV has seen its share price rise by as much as 4.9% since August's low, an increase of nearly 50%.
OpenAI, the owner of ChatGPT, has reached a record valuation of $500 billion due to an employee stock sale and deals with South Korean chipmakers. Sam Altman of OpenAI is set to visit Taiwan and South Korea to meet with Taiwan Semiconductor Manufacturing Co., Hon Hai Precision Industry Co., and South Korean chip manufacturers. This comes as South Korean chip stocks surge, with SK Hynix shares rising 10% and Samsung Electronics Co. gaining 3.5%.
Analysts attribute the bull market in the tech sector to the 'fear of missing out', with investors largely ignoring bubble fears. The market capitalization of global chipmakers increased by $200 billion in a single trading day. Chipmakers' valuations have increased significantly, with Bloomberg's Asia Chip Gauge trading at 19 times earnings forecasts and the SOX index at 27 times earnings.
The tech sector's growth, particularly in AI and chipmaking, shows no signs of slowing down. With investors eager to capitalize on the latest innovations and governments supporting domestic tech companies, the future looks bright for the industry.
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