Valuations That Defy Gravity: The Chipmakers' Paradox The meteoric rise of Chinese chipmakers' valuations has raised eyebrows in financial circles, with investors seemingly forgetting that even the most successful companies cannot sustain sky high valuations indefinitely.
The recent surge in stocks like Semiconductor Manufacturing International Corp. (SMIC) and Yangtze Memory Technologies Co. Ltd. (YMTC) has created unease among market observers.
China's chipmakers have long been seen as industry darlings, with state of the art facilities and cutting edge technology enabling them to carve out a niche in the global supply chain.