--- title: "Analyst Sees Trouble Brewing for Hot Chip Stocks" type: "News" locale: "en" url: "https://longbridge.com/en/news/295836931.md" description: "Analyst Sara Awad warns of potential downside for semiconductor stocks in H2 2026 due to elevated expectations and shifting supply dynamics. Despite strong earnings from TSMC, ASML, and Samsung, shares fell as good news was priced in. Constrained supply, rather than demand, drove recent shortages, but new capacity may reduce pricing power. Memory stocks like SK Hynix face pressure. However, long-term AI demand remains compelling, with growth expected in lower-cost ASIC solutions." datetime: "2026-08-13T19:31:24.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295836931.md) - [en](https://longbridge.com/en/news/295836931.md) - [zh-HK](https://longbridge.com/zh-HK/news/295836931.md) generator: "portal-rs" --- # Analyst Sees Trouble Brewing for Hot Chip Stocks Semiconductor investors may have to endure more pain before the next leg of the AI chip boom takes hold. Sara Awad of Tech Contrarians expects semiconductor stocks to face additional downside during the second half of 2026, arguing that elevated expectations and shifting supply conditions are creating a tougher setup even as long-term AI demand remains compelling. The warning comes after strong earnings failed to lift several industry leaders. Taiwan Semiconductor Manufacturing , ASML and Samsung Electronics all posted solid results, yet their shares still moved lower, suggesting investors had already priced in much of the good news. Awad believes supply dynamics are becoming increasingly important. She argues that the recent semiconductor shortage has been driven more by constrained supply than exceptionally strong end demand, while PC and smartphone markets are expected to contract by double digits this year. As additional capacity comes online, semiconductor companies could lose some of the pricing power that helped fuel the sector's earnings surge. Memory stocks may be especially vulnerable. Awad pointed to SK Hynix shifting capacity toward general-purpose DRAM and rising Chinese production as potential sources of additional supply that could pressure pricing. Still, she is not abandoning the broader AI chip thesis. Awad expects AI infrastructure spending to increasingly shift toward lower-cost computing solutions such as ASICs, potentially spreading gains beyond the sector's current winners. For investors, that creates a more selective setup: companies with realistic expectations and exposure to efficient AI compute could outperform, while richly valued semiconductor names dependent on sustained shortages and pricing power may face further downside. ### Related Stocks - [ASML.US](https://longbridge.com/en/quote/ASML.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [TSMG.US](https://longbridge.com/en/quote/TSMG.US.md) - [ASMG.US](https://longbridge.com/en/quote/ASMG.US.md) - [TSMZ.US](https://longbridge.com/en/quote/TSMZ.US.md) - [SKHU.US](https://longbridge.com/en/quote/SKHU.US.md) - [SKHX.US](https://longbridge.com/en/quote/SKHX.US.md) - [ASMU.US](https://longbridge.com/en/quote/ASMU.US.md) - [TSMU.US](https://longbridge.com/en/quote/TSMU.US.md) - [SKHZ.US](https://longbridge.com/en/quote/SKHZ.US.md) - [TSMX.US](https://longbridge.com/en/quote/TSMX.US.md) - [STSM.US](https://longbridge.com/en/quote/STSM.US.md) - [DRAM.US](https://longbridge.com/en/quote/DRAM.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [USD.US](https://longbridge.com/en/quote/USD.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [SSG.US](https://longbridge.com/en/quote/SSG.US.md) - [SOXS.US](https://longbridge.com/en/quote/SOXS.US.md) - [TMYY.US](https://longbridge.com/en/quote/TMYY.US.md) - [TSMY.US](https://longbridge.com/en/quote/TSMY.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) ## Related News & Research - [Samsung Elec to convene board meeting Friday to discuss shareholder return plan, says source](https://longbridge.com/en/news/296559540.md) - [Samsung unveils plan to return up to US$79 billion to shareholders](https://longbridge.com/en/news/296615008.md) - [Tech Has Ignored Rates For Months. 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