Weekly Buzz: Semiconductor stocks just added US$200 billion in a single day

Chipmakers just posted their largest single-day gain on record. Semiconductor companies worldwide collectively added over US$200 billion in market value after OpenAI – itself now valued at US$500 billion – secured multibillion-dollar chip deals with major manufacturers.

What’s behind the surge this time?

The rally swept across the entire semiconductor value chain. South Korean manufacturers led the charge, with SK Hynix soaring 10-12% to hit all-time highs while Samsung climbed nearly 4% to its highest level since January 2021. OpenAI formalised partnerships with both companies to secure supplies of high-bandwidth memory chips, critical components for AI infrastructure.

Days later, AMD surged 24% after announcing its own multibillion-dollar deal with OpenAI. The move diversifies the company’s exposure to Nvidia as the dominant supplier in chips. As AI infrastructure scales to hundreds of billions in spending, relying on a single supplier can create bottlenecks.

OpenAI – the firm behind ChatGPT – has grown from a US$29 billion valuation in April 2023 to half a trillion dollars now, making it the world's most valuable startup. Revenue figures back this up: the AI frontrunner generated US$4.3 billion in the first half of 2025, up from US$3.7 billion for all of 2023.

What this means for you as an investor

Deloitte projects global semiconductor sales will reach US$697 billion in 2025, up from US$627 billion in 2024. On the other hand, valuations have entered frothy territory. Tech companies are pouring roughly US$400 billion annually into AI infrastructure, according to industry estimates, while consumer AI service revenue sits at just US$12 billion.

The path forward will likely mirror previous technological shifts. The dot-com crash destroyed many individual firms, but created the internet infrastructure we use today. For investors, diversifying across the semiconductor value chain – from chip design to manufacturing – reduces your concentration risk while maintaining exposure to the long-term trend.

(If you’re looking for diversified exposure to tech, check out our Technology Enablers portfolio.)

Investor’s Corner: A rising liquidity tide lifts all markets

Global liquidity is the stream of cash and credit flowing through the financial system – think of it as oxygen for a debt-based global economy. Economists track this through aggregated M2 money supply, which includes currencies and bank deposits across major economies. At nearly US$96 trillion today, it's one of the most powerful forces shaping markets, and it’s only growing bigger.

During the pandemic crisis in 2020, for example, a burst of stimulus helped cushion economies against a massive slump. Another wave came in 2024, offsetting the impact of higher interest rates. That’s probably a big reason why the economy has chugged along over the past couple of years and avoided a recession: liquidity has kept flowing despite rising rates.

Here's where it affects your portfolio. New liquidity enters the system as cash, but investors don't leave it sitting idle for long. When cash accumulates, investors typically rotate into longer-duration and higher-risk assets searching for better returns. That helps explain why assets like tech stocks and Bitcoin tend to rally during periods of liquidity expansion. The trend isn't reversing anytime soon either: with governments pivoting towards fiscal expansion, the liquidity tap will likely be staying open.

(For a portfolio that’s built to capture opportunities across asset classes, check out General Investing.)

This article was written in collaboration with Finimize.