European Central Bank Governing Council member Emmanuel Moulin has suggested that artificial intelligence could heighten inflationary volatility.
Morgan Stanley has issued a warning that chip manufacturers are encountering greater pressure on their ability to set prices.
The CEO of SK Hynix Inc anticipates that the shortage of memory chips will persist into the next decade.
ECB's Moulin on AI's Potential to Increase Inflation Volatility
European Central Bank official Emmanuel Moulin stated that the impact of artificial intelligence on inflation is difficult to forecast and may lead to increased price fluctuations.
"The overall impact on inflation is particularly hard to predict because AI acts on variables on both the supply and demand sides," Moulin commented in remarks published by Investir. "Moreover, its effects may not only be seen on the level of inflation but also on its volatility."
The head of the French central bank noted that AI could have an inflationary effect in the short term due to increased capital expenditure, but may subsequently suppress inflation as productivity improves.
Morgan Stanley Warns of Growing Pressure on Chipmaker Pricing Power
Morgan Stanley's Lisa Shalett has advised investors to exercise caution regarding semiconductor stocks, indicating that increasing evidence of limited pricing power for chipmakers suggests these stocks may have risen excessively due to optimism over AI spending.
"We are seeing the AI data center technology stack being redesigned to incorporate lower-cost, custom chips, and many hyperscale cloud providers are now designing these chips in-house," said Shalett, Chief Investment Officer for Morgan Stanley Wealth Management, on Friday.
SK Hynix CEO Foresees Memory Chip Shortage Lasting Beyond 2030
SK Hynix Inc CEO Kwak Noh-Jung stated that the memory chip shortage, which is disrupting markets for computers, automobiles, and devices, is likely to continue beyond 2030.
Meta Outperforms 'Magnificent Seven' Tech Stocks Boosted by Positive AI Compute Report
Meta Platforms Inc outperformed other major U.S. tech stocks on Friday, following a report from research firm SemiAnalysis that expressed optimism about its artificial intelligence computing capacity strategy.
"Building a truly globally leading large model requires three elements: data, talent, and compute. We believe Meta is the only hyperscaler or emerging AI lab positioned to achieve world-leading status in all three, making it the strongest contender to catch up with Anthropic and OpenAI," SemiAnalysis wrote in its report.
SemiAnalysis added, "Our latest Tokenomics model estimates that by the end of this year, Meta will possess more AI compute capacity than OpenAI and Anthropic."