Introduction
OpenAI, the artificial intelligence company backed by Microsoft, reached a market valuation of $500 billion after its employees sold a limited number of shares. This significant stock sale, valued at $6.6 billion, catapulted OpenAI, led by Sam Altman, to the title of the world’s most valuable startup, surpassing SpaceX (Elon Musk’s company) with a valuation of $400 billion.
OpenAI’s Impact on the Chip Market
Following this announcement, stock prices for chip manufacturers surged on Thursday. The Philadelphia Semiconductor Index (SOX), which includes the 30 largest companies in the industry, gained 1.94% and closed at 6,626.4 units.
- AMD: Advanced Micro Devices, a semiconductor producer of computing processors and graphics cards, saw its stock rise 3.48% to $169.72 per share.
- Lam Research: A US-based provider of equipment and services for semiconductor manufacturing, its stock increased 2.94% to $146.99 per share.
- SanDisk: A computer technology firm designing and manufacturing flash memory products, its stock went up 2.50% to $124.15 per share.
- Broadcom and Qualcomm: Both semiconductor manufacturers and providers reported stock price increases of 1.44% ($338.18 per unit for Broadcom) and 1.41% ($168.85 per unit for Qualcomm), respectively.
South Korean-listed companies also experienced positive returns. SK Hynix, the world’s second-largest memory chip producer, saw a 9.86% increase to 395,500 won, while Samsung rose 3.49% to 89,000 won.
Increased Demand for AI Chips
Chip stocks gained ground on Thursday after reports that major South Korean companies signed initial agreements to supply chips for OpenAI’s Stargate project, fueling optimism about AI memory demand in global stock markets.
Analysts from Monex Casa de Bolsa explained, “Global stock markets extended their bullish momentum, led by the technology sector, following the announcement of OpenAI’s stock sale that raised its valuation to $500 billion, solidifying its position as the world’s most valuable startup.”
They added, “This event further bolstered optimism around AI, driving gains in major indices that logged their fifth consecutive day of increases.”
Global Push for AI Data Centers
OpenAI’s initiative is part of a global effort to build data centers for next-generation AI tools, an endeavor expected to cost trillions of dollars and require substantial chip, server, cooling system, and electricity supplies.
Key Strategic Moves in the Sector
Samsung Electronics and SK Hynix signed letters of intent to supply memory chips for OpenAI’s data centers, while South Korean chipmakers collaborate with the ChatGPT manufacturer to meet growing demand for their Stargate project.
AMD experienced stock price increases following announcements of a strategic alliance with Cohere for AI models on its Instinct infrastructure and reports of discussions with Intel to manufacture some of its chips, diversifying production beyond TSMC.
Optimism in the semiconductor sector, particularly for data center and AI chips, also contributed to the advance.
