Dan Ives Warns Chip Stocks Aren't Done Falling, Sees Another 12% Drop — But Tom Lee Calls AI Selloff an 'Overreaction,' Predicts 20% Tech Rally
Key takeaways
- Chip stocks may drop another 10‑12%, but AI‑driven tech could rally 20% if the market corrects.
- Ives forecasts a 10‑12% further decline for chip stocks
- SOXX is 30% below its highs
- SOXX YTD decline 23.52%
What happened
Dan Ives says chip stocks could fall another 10‑12% as the tech sell‑off continues, while Tom Lee argues the AI‑related drop is an overreaction and expects a 20% rally for technology names.
Why it matters
Ives’ forecast signals further downside risk for semiconductor and related tech stocks, potentially prompting investors to reassess exposure. Lee’s upbeat view highlights differing market expectations and could influence short‑term sentiment and trading flows.
Short-term and longer-term
Short-term. Over the next few days, watch SOXX and other semiconductor names for further declines toward the 10‑12% range.
Longer-term. Over the coming months, the chip sector’s valuation compression could affect long‑term growth prospects, while a 20% tech rally would improve returns for broader tech exposure.
Words on this card
- NYSE Semiconductor Index
- An index that tracks the performance of semiconductor companies listed on the New York Stock Exchange, often represented by the SOXX ETF.
- AI
- Artificial Intelligence, computer systems that can perform tasks that normally require human intelligence.
- Hyperscaler
- Large cloud service providers that build massive data centers to support computing needs.
- Hedge fund
- An investment fund that uses advanced strategies to earn high returns, often active in market timing.
- ETF Learn
- Exchange‑traded fund, a basket of securities that trades like a stock on an exchange.