Shares of technology companies rose as traders continued to chase gains in the memory chip makers that are the latest locus of artificial-intelligence bets.
Micron shares rose sharply, and have now almost tripled for the year to date, as the AI boom causes a surge in prices of memory chips.
Cerebras Systems, a maker of chips that have specialized AI applications, said it will offer 30 million shares in its planned initial public offering at a price of $150 to $160 a share, up from its previous plan to offer 28 million shares at a price of $115 to $125 a share, with the potential to raise $4.8 billion in capital.
Japanese investment conglomerate Softbank Group launched a battery business, an attempt to address the voracious electricity demand created by the AI boom.
Circle Internet Group's shares rallied as a slowdown in cryptocurrency trading was offset by revenue from AI applications of its technology.
One strategist said the sense that "hyperscalers" have justified historic levels of capital investment and borrowing with their robust quarterly earnings reports could be premature.
"The question is not whether demand is real, but whether revenue arrives fast enough, and at high enough margins, to justify the scale, timing, and financing of the compute commitments being built around it," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund, in a note to clients. "If revenue decelerates from extraordinary growth to 'merely' doubling, that alone may be enough to strain parts of the take-or-pay, cloud-commitment, and infrastructure economics now embedded across the cycle."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-11-26 1850ET
