Morgan Chase strategist predicts that profit growth will drive the chip unit to rebound

On 20 July, Morgan Chase strategist stated that AI-related equities were unlikely to be under pressure in the long term and that strong profitability growth and better valuation were expected to re-stimulate demand, in particular by semiconductor companies. In the report, a team led by Mislav Matejka noted that semiconductor stocks had been disconnected from the improved profitability prospects. The report states that substantial supply growth will not take place until 2028, so it is too early to reflect the half-conductor price cut in the market. According to the report, the basics may remain constructive. The relatively strong and weak indicators of these chips are rapidly approaching oversale areas, and strategists have suggested that if capital expenditures by super-large data centre operators are expected to remain strong, investors should “reenter the block in the summer”。