Chip-Stock Selloff Could Signal Start of AI Trade's Structural Repricing

Dow Jones10-13

0907 GMT - The chip-stock selloff could be the start of structural repricing of the artificial-intelligence trade rather than a short-term dip, says Coin Bureau's Nic Puckrin in commentary. The biggest concern is centered around potential competition from China's CXMT for Samsung Electronics and SK Hynix, he says, noting that the South Korean companies' enormous profits had been driven by supply constraints and insatiable demand. The current selloff could be a cue for investors to consider favoring assets that are less dependent on the AI chip boom. "The AI buildout isn't going anywhere, so companies benefiting from that could still have further to run," the cross-asset analyst says. "But the memory boom is getting shaky," he adds.

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