Wall Street Turns More Selective on AI Chip Stocks Ahead of Earnings Season

SKHYV-0.98%
MU-1.19%
According to portfolio managers and analysts cited by Yahoo Finance on July 11, Wall Street is becoming more selective on artificial intelligence chip stocks as the earnings season approaches next week. Investors are shifting focus from momentum-driven AI spending to scrutinizing fundamentals including earnings growth, revenue acceleration, and free cash flow. SK Hynix's 14% gain on its Nasdaq listing shows market enthusiasm for memory chip suppliers remains strong, offering investors an alternative to U.S. semiconductor leader Micron. However, the Philadelphia Semiconductor Index declined 12% since late June, while the Roundhill M7 ETF rebounded only 8%, indicating analysts expect hyperscalers to reconfirm AI infrastructure investment commitments during earnings to support memory chip and equipment makers.
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