High-performance computing drives market volatility as AI reshapes investment dynamics

High-skill computing has become a dominant force in financial markets, with semiconductor stocks now influencing asset prices more than oil prices, according to Goldman Sachs. The firm's research indicates that semiconductor sector performance has explained 54% of asset price divergence over the past three weeks, compared to just 2% from oil prices. Investor sentiment is closely tied to tech stocks, with this link strengthening in recent years. Goldman Sachs' risk appetite indicators have closely mirrored the performance of large tech stocks recently. Market volatility spiked yesterday following Anthropic's IPO filing, which boosted investor enthusiasm for AI-related stocks. The Nasdaq and S&P 500 rose about 1%, while NVIDIA's shares climbed 2% and the Philadelphia Semiconductor Index gained 3%. This rally extended to Asian markets on Tuesday, with the KOSPI index rising 5% and Samsung Electronics up 6%, while SK Hynix surged 8%. Notably, the KOSPI index has lost about 40% of its value since June, wiping out some of this year's gains, despite a previous rise of over 100%. The Korean market is particularly sensitive to AI-driven trading, as storage chip stocks account for about half of the KOSPI index weight. Goldman Sachs analysts noted that investor sentiment has not yet reached historically typical buying levels.