Taiwan’s monthly chip exports surged to an all-time high of $30.8 billion, marking a 60% increase compared to the previous year. Meanwhile, shares of both Advanced Micro Devices (AMD) and Micron Technology (MU) broke out of extended consolidation phases during the month.
According to Charles Edwards, founder of Capriole Investments, this development offers vital proof that artificial intelligence demand is still undervalued by the market.
Taiwan Chip Exports Set a Record on AI Demand
Taiwan’s Ministry of Finance announced that integrated circuit exports reached $30.797 billion in August, representing the quickest year-over-year expansion seen since 2020.
During the month, chips represented 37.4% of all exports out of Taiwan, up from the 34.9% share recorded in July, demonstrating further market concentration.
Data from across the region supports this movement. In South Korea, chip exports grew by 259% across the first 20 days of September. TSMC posted a 53.3% revenue gain for August, and Taiwanese export orders jumped by 71.4%.
While skeptics contend that current valuations already factor in a significant portion of this demand—echoing recurring bubble warnings that have accompanied the memory sector rally all year—the numbers continue to rise.
AMD Price Prediction: Can It Reach $691?
- AMD has cleared a significant resistance barrier and recently notched a record peak of $624.84. Should the upward momentum persist, the next primary price objective rests near $691, which is roughly 13% above current valuations.
- An extended rally could drive AMD toward $827. Nevertheless, the equity currently appears somewhat overbought as its Relative Strength Index (RSI) exceeds 70, indicating that a brief correction remains possible even if the overarching trend stays bullish.
- The primary support zone to monitor is close to $585. A drop below this threshold would undermine the validity of the breakout, leaving subsequent support levels near $550 and $435.
Micron Price Prediction: $1,032 Is the Key Level
- Micron is successfully maintaining a position above a critical $1,032 support floor. Bulls have defended this zone twice over the course of the week, and holding above it preserves the integrity of the recent breakout.
- The upcoming major upside objective is Micron’s record high of $1,255. The stock sits roughly 16% beneath that mark, while its RSI hovers near 60, implying it possesses more room for appreciation than AMD before appearing stretched.
- A fall under $1,032 would soften the technical outlook. In that scenario, subsequent support lines would emerge around $895 and $783. Micron’s September 30 earnings report could serve as the next major catalyst, with options pricing pointing toward an anticipated swing of about 10%.