Nomura Securities Team: It's Premature to Assert Chip Stocks Have Peaked

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On July 1, the Nomura Securities team stated that it is still too early to assert that chip stocks have peaked. They believe that the upward momentum of chip stocks will continue for two reasons: first, the ultra-large-scale data center operators, who either aim to ramp up operations or exit the market, will still be unable to stop their investments by 2027, partly due to the rising costs of memory chips; second, the construction plans for data centers are accelerating. The team described the recent pullback in chip prices as 'healthy,' but also warned that the market has yet to digest some potential risks and shortages that may arise in the future.
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