Ex-JPMorgan Strategist Warns: Chip Stocks Overvalued, Could Fall 30%

Deep News03-19

A former JPMorgan strategist has indicated that under current market conditions, semiconductor and memory stocks could face downside risks of up to 30%. Marko Kolanovic, who previously served as the bank's chief strategist, suggested that the recent rally in chip-related stocks may be driven more by momentum than by fundamentals. He noted similarities to past market levels when valuations were lower. Kolanovic mentioned that about a week ago, when the S&P 500 and oil prices were near current levels, memory-related stocks traded approximately 30% lower than they do now. This comparison implies that recent gains may have outpaced broader macroeconomic trends. These comments come as investors weigh strong demand from artificial intelligence against concerns over valuation levels and potential cyclical fluctuations in the semiconductor industry.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment