Stock market turmoil sheds stark light on the opaque AI economy - The Guardian

Recent global stock market volatility, particularly in AI-related sectors, has highlighted the complexity and opacity of the AI economy. The listing of Chinese chipmaker CXMT on the Shanghai Stock Exc... Read original →

The structural risks within the AI economy are becoming increasingly evident, especially in the semiconductor sector. The sharp rise in CXMT’s valuation reflects a reassessment of the potential for domestic chip substitution, even though its core business lies in DRAM rather than GPUs. Its technological progress signals China’s rapid advancement in key manufacturing processes, posing a direct threat to ASML’s EUV dominance. Should China truly master deep-ultraviolet lithography, it could severely disrupt NVIDIA’s supply chain. While NVIDIA currently dominates AI compute, long-term shifts toward self-reliance in semiconductors are inevitable. U.S. export controls are heightening global supply chain uncertainty, forcing companies to reevaluate compliance costs and technological dependencies. Over the next 12 to 24 months, the AI chip market will likely see deeper regional fragmentation, with growing tensions between technological autonomy and capital security.