Morgan Stanley Warns on Chip Stocks, Adding to Bearish Tech Call
- Cyclical risks are growing after stellar sector performance
- Negative data points in industrial chips spell wider troubles
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It’s time to step back from market-darling chip stocks, according to Morgan Stanley.
The U.S. semiconductor sector now has the poorest risk-reward ratio in three years as cyclical risks are piling up, according to the broker, which last month said investors should sell the crowded technology sector.