AI demand drives Singapore GDP but chipmakers take a hard hit
AI-linked investment continues to support Singapore's economy, though second-quarter growth eased. It was a torrid week for global chipmakers, with share prices falling sharply as AI-related investment cooled.
Singapore's economy continued to grow in the second quarter on the back of strong demand for AI infrastructure, though the pace of growth slowed compared with previous quarters. Officials said fluctuations in global demand were weighing on the expansion.
Over the same period, global chipmakers endured a torrid week, with share prices falling sharply as appetite for AI-related investment cooled. Investors say concerns over sector overvaluation have been building for some time.
Analysts expect Singapore's strategy of positioning itself as a regional AI and finance hub to remain sustainable over the long term, even as short-term volatility in chip markets continues to ripple through global supply chains.
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