BlackRock: The Sell-off in Chip Stocks Has Gone Too Far

Glonghui, July 23rd | In recent weeks, chip stocks such as SanDisk and Micron Technology have fallen from being Wall Street's biggest AI winners to some of the worst-performing stocks. However, BlackRock, the world's largest asset management company, believes investors may have misjudged the situation. BlackRock stated that the recent sharp sell-off in technology and semiconductor stocks is “an overreaction,” and warned that the market is conflating “changes in the AI competitive landscape” with “an AI investment collapse.” BlackRock said that strong economic growth and continued earnings expansion have led it to maintain its “overweight” position in U.S. stocks, and it advises investors to focus on AI bottleneck sectors such as electricity, chips, and data centers.