Morgan Stanley's Chief Equity Analyst Says Chip Stocks Could Fall 30-40%, Maintains S&P 500 Year-End Target of 8000

US500-0.41%
According to Bloomberg, on July 6, Morgan Stanley's chief U.S. equity analyst Mike Wilson said chip stocks, while remaining core assets of the AI wave, have become severely overbought and a short-term pullback of 30-40% is entirely possible. However, Wilson believes this does not signal the end of the U.S. stock rally, as capital rotation into other sectors could allow the S&P 500 to continue climbing. He maintained his year-end target for the S&P 500 to break through 8000, citing enterprise earnings growth as the key support for the rally.
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