Chip Market Troubles Pose Threats After AI Euphoria
- Broadcom earnings to give window into industry prospects
- Boom and bust trends in the sector weigh on its valuation
Photographer: Akos Stiller/Bloomberg
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This year’s AI stock frenzy has papered over cracks in the semiconductor market. Beyond the enthusiasm for the likes of Nvidia Corp. and Advanced Micro Devices Inc., it’s a mixed picture for investors.
Recent earnings pointed to slumping industrial and networking chip markets, while some on Wall Street are bracing for the impact of a potential economic slowdown on automobile chips. On the flip-side, smartphone components and personal computers look set for recovery, according to Samsung Electronics Co. and Intel Corp.