Chipmakers Defy AI Bubble Concerns with Record-Breaking Earnings

The "AI boom" has proven not to be a bubble. Major semiconductor companies across the entire supply chain—including TSMC, ASML, Samsung Electronics, and SK Hynix—have posted record earnings. TSMC achieved $20.2 billion in second-quarter revenue with a gross margin of 67.7%, while ASML raised its annual sales outlook. Samsung Electronics recorded a provisional all-time high, and SK Hynix is preparing to announce its second-quarter results.

A structure has been established where capital expenditures by Big Tech firms, such as Alphabet, are driving revenue growth across the semiconductor supply chain. Consequently, Alphabet's earnings, scheduled for release on the 22nd, and its future investment plans are in focus as the next market variables.

As bottlenecks in AI data center expansion shift from chip supply to infrastructure issues such as power and permits, the responses from the U.S. state of New York and the South Korean government stand in contrast. New York has imposed a moratorium on environmental permits for up to one year for new data centers with a power consumption of over 50MW. Conversely, the South Korean government plans to invest 550 trillion won to build an 8.4GW-class AI data center for phased operation starting in 2029, in collaboration with SK, GS, Naver, and others, along with infrastructure expansion.

While the South Korean government is pushing for the construction of an 8.4GW-class AI data center targeting completion in 2029 and significant investment, whether the planned infrastructure expansion will translate into actual power supply is cited as the key variable that will dictate future success.