Chip stocks have been among the market’s biggest winners over the past several years. Huge demand tailwinds from the data center, cloud computing, connected device and AI markets have converged on a limited-supply base, creating a “high demand, low supply” dynamic in the chip market wherein chip prices are soaring. Such improvements have driven huge gains in chip stocks. Chip supply won’t remain subdued forever — it is already ramping to meet demand, and there are some reports out there that chip prices may have already peaked.
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