Morgan Stanley's Lisa Shalett called on investors to be cautious about chip stocks. She said there are more signs that chipmakers' limited pricing capacity means these stocks may have risen too much due to optimism about AI spending. “We are seeing AI data center technology stacks being redesigned to include lower-cost self-developed chips, and many hyperscale cloud service providers are now designing these themselves,” said Shalett, chief investment officer at Morgan Stanley Wealth Management on Friday. South Korean chipmaker SK Hynix began trading on Nasdaq on Friday as Shalett issued the above warning. The company previously raised 26.5 billion US dollars through a US listing, setting a record for the largest initial public offering by a foreign company in the US. Meanwhile, SK Hynix shares listed in South Korea have fluctuated sharply recently, falling 26% since reaching their peak last month. “Overall, there is still plenty of capital available in this area of transactions,” Shalett said. However, she pointed out that the market is experiencing a typical phenomenon in the industry: “When there is a bottleneck in the supply chain and some memory chip manufacturers obtain excessive profits, engineers will start” to find cheaper alternatives. Shalett said in an investor report this week that the semiconductor sector is “clearly overbought.” She said on the Surveillance program that from chip ETFs to the Philadelphia Semiconductor Index, there are signs supporting this judgment. According to compiled data, the price-earnings ratio of the Philadelphia Semiconductor Index has more than tripled since 2022.

Morgan Stanley's Lisa Shalett called on investors to be cautious about chip stocks. She said there are more signs that chipmakers' limited pricing capacity means these stocks may have risen too much due to optimism about AI spending. “We are seeing AI data center technology stacks being redesigned to include lower-cost self-developed chips, and many hyperscale cloud service providers are now designing these themselves,” said Shalett, chief investment officer at Morgan Stanley Wealth Management on Friday. South Korean chipmaker SK Hynix began trading on Nasdaq on Friday as Shalett issued the above warning. The company previously raised 26.5 billion US dollars through a US listing, setting a record for the largest initial public offering by a foreign company in the US. Meanwhile, SK Hynix shares listed in South Korea have fluctuated sharply recently, falling 26% since reaching their peak last month. “Overall, there is still plenty of capital available in this area of transactions,” Shalett said. However, she pointed out that the market is experiencing a typical phenomenon in the industry: “When there is a bottleneck in the supply chain and some memory chip manufacturers obtain excessive profits, engineers will start” to find cheaper alternatives. Shalett said in an investor report this week that the semiconductor sector is “clearly overbought.” She said on the Surveillance program that from chip ETFs to the Philadelphia Semiconductor Index, there are signs supporting this judgment. According to compiled data, the price-earnings ratio of the Philadelphia Semiconductor Index has more than tripled since 2022.