AI Boom

Amazon’s hefty capital expenditure forecast triggered a significant stock drop, heightening investor concerns about the AI boom’s sustainability. While tech giants collectively plan massive AI investments, Amazon’s projections have spooked the market, contrasting with positive reactions to Alphabet and Meta’s spending. This shift signals a move from “fear of missing out” to intense scrutiny of AI-driven expenditures and their uncertain returns, leading to a trillion-dollar market cap loss for major tech firms.

SanDisk’s stock soared after a strong Q2 earnings report, significantly beating Wall Street expectations. Driven by AI demand and a flash storage chip shortage, the company exceeded profit and revenue forecasts. SanDisk’s optimistic Q3 outlook, projecting substantial growth in both revenue and earnings, led to an “outperform” upgrade from Raymond James. The memory chip shortage, with demand outpacing supply, is enabling price increases and strong profit margins for companies like SanDisk, impacting various tech sectors.

SK Hynix reported a record-breaking Q2 2025, driven by high demand for its memory solutions, especially HBM. Revenue surged 35% YoY to ₩22.232 trillion, with operating profit up 68% to ₩9.2129 trillion. This performance was attributed to strong DRAM and NAND flash memory shipments, particularly advanced HBM3E products benefiting from the AI boom. SK Hynix anticipates continued growth in H2 2025, focusing on server modules, high-capacity SSDs, and 321-layer NAND flash technology to solidify its market leadership.