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Chip stocks slide in US and Asia as AI jitters rattle investors

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Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#31

Post by grey-area »

torginus wrote: post #28

There is undoubtedly a bubble in the sense that AI is crazy overfinanced, and there's a semiconductor shortage - chip makers usually have like mid to low two digit margins for manufacturers of complex chips like NVIDIA, and single digit for ones commodities like memory. The fact that these companies are either selling these things at multiples of their previous prices, and even then, their P/E ratios are often 10,20,…

There are also circular deals and self-financing happening from the likes of Nvidia.

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#32

Post by yogthos »

dmix wrote: post #25
elliotec wrote: post #18

Earlier quoted context omitted.

I'm mostly talking about incredibly environmentally destructive data centers and energy use on the current trajectory. Not even thinking about water problems, the gas and coal requirements alone are climate disasters. [1] [2] But if it is a bubble, which many would argue is the case, an AI capex bust with it's circular financing collapse is one of, if not THE top threat to global financial stability. ~$725B combined…

China managed to double energy production between 2015-2025 (including 60 nuclear reactors). On paper the west should be able to do the same, tech companies are putting huge money into solar, natural gas, and nuclear. Most of the limitations are as you mention people protesting the whole idea of new industry and energy, which is the source of most of the risk. That plus open model/Chinese competition undercutting som…

China has tightly integrated domestic supply and a centrally planned economy. That's why China has consistently been able to do things that are simply impossible in the west.

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#33

Post by barrkel »

elliotec wrote: post #18
dmix wrote: post #6

Earlier quoted context omitted.

> The macro effects of all the money going into AI are apocalyptic The doomer discourse around AI is about as overhyped as the investors are. It's two parties getting pumped up by social media who will be disappointed it's just some new higher economic tier rather than a quick boom or bust. It always takes twice as long for new markets to fully mature. Industries need to actually adapt technology before they see seri…

I'm mostly talking about incredibly environmentally destructive data centers and energy use on the current trajectory. Not even thinking about water problems, the gas and coal requirements alone are climate disasters. [1] [2] But if it is a bubble, which many would argue is the case, an AI capex bust with it's circular financing collapse is one of, if not THE top threat to global financial stability. ~$725B combined…

The facts don't support a real eco panic. IMO it's a proxy for middle class job security fears, displacing into known middle class shibboleths. It can be sincere, but it's motivated reasoning.

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#34

Post by broodbucket »

grey-area wrote: post #30
broodbucket wrote: post #27

Earlier quoted context omitted.

I feel for those who genuinely liked using emdashes in their writing

Em dashes are not the problem, nobody cares about their use. Shoddy and melodramatic writing that doesn’t even make sense is the problem.

The point is that nowadays people will see anything with emdashes and assume it is slop even if it's hand written

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#35

Post by rickydroll »

dmix wrote: post #25
elliotec wrote: post #18

Earlier quoted context omitted.

I'm mostly talking about incredibly environmentally destructive data centers and energy use on the current trajectory. Not even thinking about water problems, the gas and coal requirements alone are climate disasters. [1] [2] But if it is a bubble, which many would argue is the case, an AI capex bust with it's circular financing collapse is one of, if not THE top threat to global financial stability. ~$725B combined…

China managed to double energy production between 2015-2025 (including 60 nuclear reactors). On paper the west should be able to do the same, tech companies are putting huge money into solar, natural gas, and nuclear. Most of the limitations are as you mention people protesting the whole idea of new industry and energy, which is the source of most of the risk. That plus open model/Chinese competition undercutting som…

> people protesting the whole idea of new industry and energy,

I may be venturing into aluminum hat territory but it appears that oil and gas companies and conservative organizations are pumping all sorts of FUD and misinformation into the anti-solar, anti-battery movement, period.

One of the arguments against widespread solar is that it's environmentally damaging, yet, time and time again, it's shown that solar farms increase soil moisture, improve biodiversity in plants and insects, period. If cattle or sheep are grazing on that land, the shade reduces their stress from summer heat and can also shelter them sometimes in the winter.

Again, may be complete BS, but apparently Chinese desert solar farms are increasing the moisture in the desert, making it easier for plants to grow and increasing rainfall downstream from the plant solar farms.

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#37

Post by benrutter »

apparent wrote: post #2

So is this good news for the companies that have taken a hit as AI stocks have climbed, and semiconductor shortages have rattled investors?

I'd be cautious describing market sell offs as good news for anyone since the fall out could be pretty bad (that's a "worst case" scenario, so far nothing like that)

There's some winners though, people dumping AI stocks are mostly buying stocks elsewhere, Apple being an obvious winner[0].

[0] https://www.theguardian.com/technology/2026/jul/28/apple-sec...

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#38

Post by Good4boothee »

klodolph wrote: post #17

I’m wondering if this is leveraged investors in KOSPI, where retail > institutional traders. More leverage = more volatility. If it actually IS a correction, I’m hoping that some of these data center projects, the ones that are REITs wearing a funny hat, can stop.

Both Samsung and SK Hynix had record earnings and stocks dropped 15%. It might be localized leverage craze, I am not sure it will have any impact on actual RAM production/data center construction.

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#39

Post by apparent »

benrutter wrote: post #37
apparent wrote: post #2

So is this good news for the companies that have taken a hit as AI stocks have climbed, and semiconductor shortages have rattled investors?

I'd be cautious describing market sell offs as good news for anyone since the fall out could be pretty bad (that's a "worst case" scenario, so far nothing like that) There's some winners though, people dumping AI stocks are mostly buying stocks elsewhere, Apple being an obvious winner[0]. [0] https://www.theguardian.com/technology/2026/jul/28/apple-sec...

I wasn't referring to the purely financial angle. I meant that whatever news is driving this apparent valuation change could have impacts on other companies (like ones that are having to cope with the chip shortages).

Re: Chip stocks slide in US and Asia as AI jitters rattle investors

#40

Post by jurgenburgen »

yogthos wrote: post #32
dmix wrote: post #25

Earlier quoted context omitted.

China managed to double energy production between 2015-2025 (including 60 nuclear reactors). On paper the west should be able to do the same, tech companies are putting huge money into solar, natural gas, and nuclear. Most of the limitations are as you mention people protesting the whole idea of new industry and energy, which is the source of most of the risk. That plus open model/Chinese competition undercutting som…

China has tightly integrated domestic supply and a centrally planned economy. That's why China has consistently been able to do things that are simply impossible in the west.

Why is our economy so shitty?
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