Semiconductor stocks just had their worst week since 2020 — but it wasn't all their fault
- Semiconductor stocks erased as much as $1.3 trillion in market cap as markets digested a host of news
- While stocks recovered mildly on Monday, they sold off again on Tuesday and Wednesday, highlighting growing concerns amongst investors of an overheated market underpinned by external factors
- Demand for chips remains strong, but a host of external factors and investors remaining skittish about the AI narrative may have tipped the scales considerably for many
Chip stocks have had an impressive run over the past few years, driven by red-hot industry demand, ever-increasing demand forecasts, and increasingly expensive and labyrinthine designs.
This impressive rally has led many investors to climb aboard a seemingly never-ending train, at least in the long term, as estimates, price targets, and outlooks have been upgraded across the board over the past two years.
Current movements in the stock market, however, are giving investors pause, with three of the...
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