Investors in AI stocks are not without their long list of worries — chief among them is that demand is peaking.
"There was a notable discrepancy between management teams' outlooks for fundamentals and investors' outlooks for share prices," said Deutsche Bank ***** yst Melissa Weathers in a new note on Wednesday.
The note recapped a recent conference DB had, hosting tech execs from the likes of Intel (INTC) and Sandisk (SNDK) and investors in the ***** e.
"Fundamentally, most companies in attendance signaled steady and strong trends, especially the supply chain names gearing up for more advanced processor architectures, higher memory demand, etc. Many management teams signaled confidence not only in industry-wide trends (confidence spanned across sub-sectors like processors, broad-based semis, semicap, etc), but also company-specific efforts to expand margins and drive EPS power.
By contrast, investor sentiment has soured materially from the enthusiasm seen in the first half of the year, with "peak cycle" fears common among many investors. Much of this bearishness stems from ongoing concerns of demand destruction caused by DRAM pricing and technological innovation to break through the "Memory wall", Weathers explained.
#investors #memory #teams
"There was a notable discrepancy between management teams' outlooks for fundamentals and investors' outlooks for share prices," said Deutsche Bank ***** yst Melissa Weathers in a new note on Wednesday.
The note recapped a recent conference DB had, hosting tech execs from the likes of Intel (INTC) and Sandisk (SNDK) and investors in the ***** e.
"Fundamentally, most companies in attendance signaled steady and strong trends, especially the supply chain names gearing up for more advanced processor architectures, higher memory demand, etc. Many management teams signaled confidence not only in industry-wide trends (confidence spanned across sub-sectors like processors, broad-based semis, semicap, etc), but also company-specific efforts to expand margins and drive EPS power.
By contrast, investor sentiment has soured materially from the enthusiasm seen in the first half of the year, with "peak cycle" fears common among many investors. Much of this bearishness stems from ongoing concerns of demand destruction caused by DRAM pricing and technological innovation to break through the "Memory wall", Weathers explained.
#investors #memory #teams
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