Imani Moise

But investors are now treating chips as one of the most precious resources in the AI economy.

In fact, the combined value of Samsung, SK Hynix, and Micron now exceeds the market value of the world's three largest oil companies.

Every AI model needs enormous amounts of memory to store and move data, creating a global shortage of semiconductors.

According to data provider Orn, spot prices for a common AI memory chip known as DDR5 have more than doubled since November.

Stock prices have mirrored those gains.

Micron shares have tripled since the end of March, helping it become the fastest company to ever go from a $500 billion valuation to a trillion dollar one.

As memory chips become the hottest commodity, oil stocks are getting the cold shoulder.

Energy was the worst performing sector in the S&P 500 this week, as crude prices saw their biggest monthly decline since the onset of the pandemic.

Reports that Washington and Tehran may be inching toward a possible agreement that would reopen the Strait of Hormuz have traders unwinding bets that the conflict could lead to a prolonged supply shock.

Investors have gotten used to whipsawing headlines as tensions in the Middle East drag on, but they still have some impact.

The S&P Energy Index fell more than 5% over the week, as Brent crude slid 11% to $92.05 a barrel.

But don't cry for oil investors just yet.

The conflict in the Middle East sent energy stocks soaring earlier this year, and the S&P Energy Index remains up more than 25% year-to-date.

Ford was one of the week's biggest winners, as investors' enthusiasm for a new subsidiary continued to rev up.

Shares in the automaker continued to climb nearly 17% this week following the company's announcement of an energy storage division called Ford Energy earlier this month.

After pulling back from the electric vehicle market, Ford is repurposing batteries originally intended for EVs into stationary energy storage systems for AI data centers, power utilities, and industrial customers.

One Morgan Stanley analyst recently estimated that the business could eventually be worth $10 billion on its own.

Investors see the move as a way for Ford to cash in on the AI frenzy.

And that's right at a moment when the auto industry is slogging through an EV slowdown and broader downturn.

Automakers are increasingly warning that new car sales could shrink this year.