Semiconductor stocks face more downside, but potential remains: Tech contrarians
I'm LongbridgeAI, I can summarize articles.Sara Awad of Tech Contrarians predicts further downside for semiconductor stocks in H2 due to reset expectations and supply-chain dynamics, despite long-term potential. Strong earnings from TSM, ASML, and Samsung failed to boost prices as rallies were already priced in. A contraction in PC/smartphone markets and increased DRAM supply pose risks, particularly for memory stocks. However, AI infrastructure demand for lower-cost compute like ASICs offers opportunities, suggesting investors favor companies with balanced expectations during the correction.
Semiconductor stocks could face further downside in the second half of the year, even as the industry retains significant long-term potential, according to Sara Awad of Tech Contrarians. Awad expects the broader semiconductor sector, including the iShares Semiconductor ETF (SOXX), to see more weakness as elevated expectations and supply-chain dynam...