Investors fret as AI chip demand booms and valuations reset
Even though AI chips are selling out and orders keep piling up, big names like NVIDIA, SK Hynix, and the TSMC-Broadcom team are facing a valuation reset.
Investors are starting to worry about whether customers can actually pay for all these chips and if the crazy demand will last.
So, despite strong earnings forecasts, stock prices aren't quite matching the hype.
Chip makers focus on long term
NVIDIA's clients have huge financial commitments (Barclays puts it at $250 billion off the books), which has some folks nervous.
SK Hynix's value has dropped even though it has already locked in more than half its production for 2027 and 2028.
Meanwhile, broker research assumes Broadcom's AI semiconductor revenue will roughly double again in FY27 and then again in FY28, and TSMC is pouring money into new tech to keep up.
The big picture? These companies are focused on building for the long run, not just chasing short-term stock gains.