Elon Musk’s ‘China prediction’ may add to the pain of 20 of the most valuable global technology companies across US and Europe that have lost over $1 trillion dollars in less than 5 days
A sell-off in artificial intelligence (AI) and semiconductor shares has wiped out more than $1 trillion in market value from 20 of the world’s most valuable technology companies in less than five days, a report has said. The billionaire’s commentary arrives as investors grapple with growing anxiety over an impending global memory chip oversupply as early as 2029, spurred by chipmakers worldwide aggressively building out production capacity to meet AI workloads. South Korean memory chip giant SK Hynix plummeted more than 10%, while rival Samsung Electronics dropped 8.73%. Related tech and component suppliers saw steep declines as well, with LG Innotek sinking 8.95%, Seoul Semiconductor sliding 9.28%, and Samsung SDI down 6.26%.
Adding to the anxiety, Chinese chipmaker ChangXin Memory Technologies (CXMT) announced plans to accelerate its memory chip manufacturing capabilities, putting fresh pressure on an already rattled global market.
Elon Musk reacted to the news saying that China will be making “a LOT of RAM in 2028”, a view that could add to that pressure. CXMT recently said that it achieved a major architectural breakthrough to boost memory density by packing more data into tighter spaces. It attributes this to a combination of interest rate hikes, increasing AI infrastructure costs and intensifying competition. Notably, the rout was not confined to US exchanges, deepening across major trading hubs in Asia and Europe.