Falling AI token costs could fuel next leg of Singapore semiconductor rally: analysts
Share prices of AEM, UMS and Frencken have soared between 65 and 400% this year, with bets on AI-driven chip demand
[SINGAPORE] Singapore-listed semiconductor equipment suppliers are set to be the beneficiaries of a possible fresh wave of spending on artificial intelligence infrastructure, with falling token costs spurring wider use of AI models, analysts said.
Silicon Data’s Large Language Model Token Expenditure index – an expenditure-weighted benchmark for the cost of a million tokens – stood at US$0.9665 on Aug 31, less than half of its May peak of US$$2.0651.
The decline could trigger increased usage of AI in the form of AI applications and agentic AI, which would generate more computing demand and improve the economics of the infrastructure underpinning them, DBS Group Research said.
