Nomura Asset Management: Supply and demand concerns in the storage market and profit-taking lead to a decline in chip stocks.

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Nomura Asset Management chief strategist Hideyuki Ishiguro stated in a report that global chip-related stocks have come under pressure due to concerns over supply and demand conditions in the storage market and profit-taking in leveraged ETFs. In a report dated July 6, Ishiguro wrote, "Concerns about position adjustments in leveraged semiconductor ETFs listed in South Korea triggering profit-taking are behind the decline in chip stocks." In the short term, stock prices are driven by supply-demand dynamics and investor sentiment. However, he added that chip manufacturing companies still have the potential to gain upward momentum from AI-related earnings growth and expanding free cash flow. It is expected that the upward trend in chip stocks will continue in the medium term. (Cailian Press)
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