Morgan Stanley warns against overestimating the valuation of chip companies

Morgan Stanley has warned that the valuations of semiconductor companies may be overstated due to an excessive investment wave in artificial intelligence, with expectations of increasing pressure on the pricing power of chip manufacturers. The chief investment officer pointed out that reliance on cheaper chips and the development of in-house data centers may reduce competitors' pricing control, despite ongoing high liquidity and capital despite pressures on supply chains and profit margins.