Morgan Chase: The recent drop in chip stocks is not the beginning of a long decline, but the resilience of the next round

ACCORDING TO MORGAN CHASE, THE GAP BETWEEN THE PRICE OF THE CHIPS AND THE FUNDAMENTALS IS WIDENING WITH THE DOUBLE-DIGIT DROP IN MANY OF THE AI CHIPS' TAPS - THIS IS PARTICULARLY EVIDENT IN THE EUROPEAN SEMICONDUCTOR STOCK: EVEN THOUGH EUROPE’S SEMICONDUCTOR STOCK IS EXPECTED TO CONTINUE TO GROW IN THE NEXT 12 MONTHS, ITS SHARE PRICE IS EVEN BEHIND THE LARGE AVERAGE. THE BANK EXPECTS THAT THE SUPPLY AND DEMAND STRESS OF AI-DRIVEN DRAM WILL CONTINUE INTO 2028, AND THAT THE Q2 FINANCIAL SEASON WILL BE A CATALYST FOR THE NEXT ROUND。