AI Shares Swing After CXMT Jumps 466% and Nvidia Weighs $250 Billion OpenAI Backstop
Updated
Updated · The Guardian · Aug 2
AI Shares Swing After CXMT Jumps 466% and Nvidia Weighs $250 Billion OpenAI Backstop
3 articles · Updated · The Guardian · Aug 2
Summary
AI-linked stocks whipsawed last week after China’s CXMT surged to a 3.3 trillion yuan valuation and reports said China had developed deep-ultraviolet lithography tools, sparking a global chip sell-off before a Friday rebound.
11.5% on Tuesday and 6% on Wednesday, the Kospi slumped as SK Hynix and Samsung led losses; the Nasdaq briefly entered correction territory and Nvidia fell more than 5%, ceding the top market-cap spot to Apple.
Analysts said the market likely overreacted to CXMT because it makes DRAM memory chips, not the GPUs that power AI systems, and a global memory shortage is still expected to persist until 2030.
A bigger long-term threat is China’s reported progress in lithography, though analysts said fabs and reliable commercial tools remain years away, leaving ASML’s dominance largely intact outside mainland China for now.
Nvidia’s volatility was also tied to a reported $250 billion OpenAI datacenter backstop, adding to broader Wall Street unease over opaque AI spending and the market’s heavy dependence on a single chipmaker.
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