Chip stocks sell-off, analyst talks opportunities and long-term plays

Chip stocks continue their sector-wide slide, following a tech sell-off triggered by disappointing reports from some Magnificent 7 companies. Moor Insights & Strategy founder, CEO, and chief analyst Patrick Moorhead joins Morning Brief to discuss the semiconductor industry’s current state.
Moorhead observes that due to the chip sector’s strong momentum over the past year, “any hiccup, any rumor of something” can trigger a stock decline. He suggests this downturn presents an opportunity for investors to identify potential high-growth companies beyond industry giants like Nvidia (NVDA), Broadcom (AVGO), and Intel (INTC). Moorhead advises investors to “look at a mid-term and even… long-term approach of where those stocks are going or could go,” highlighting companies such as Qualcomm (QCOM).
Regarding industry trends, Moorhead notes that many companies are pivoting towards AI, often at the expense of other initiatives. “They want their IT groups to pivot to generative AI. And a lot of this is about FOMO, it’s the fear of missing out,” he explains. This shift in focus is creating a divide in the market: “That’s why you see companies that aren’t engaged in the generative AI wave are seeing very mixed results.”
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