Record highs for AI chip stocks

The shares of Nvidia and AMD, the two leading suppliers of AI accelerators, reached their highest levels ever. The rally has been driven by surging demand for GPUs used to train and run large language models (LLM) and other AI services.

Bubble concerns simmer

Despite the strong fundamentals, talk of an AI bubble is beginning to spread among investors and analysts, who question whether current valuations can be sustained if AI spending growth slows. The concerns remain unconfirmed predictions rather than established outcomes, and no major market correction has materialized so far.

Suppliers across the semiconductor ecosystem, including Korean memory makers such as SK hynix, which provides high-bandwidth memory (HBM) for AI chips, have also benefited from the AI boom, amplifying both the rally and the accompanying bubble debate.

The claim that Nvidia and AMD sit at record highs amid murmurs of an AI bubble is true.

Verdict: True