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AI Stocks Face Reality Check | Durham News
Morningstar is sounding the alarm: the AI and chip stocks that’ve rocketed higher may be due for a major pullback, with some AI names potentially dropping 20-30% before becoming attractive again. The issue isn’t AI’s demise, but the end of easy gains — as supply catches up with demand, especially in memory chips from giants like Samsung and SK Hynix, pricing will cool and valuations will face scrutiny. While not a crash, this signals a reset — where profitability, not hype, will define winners. Investors should act strategically: trim overexposed positions and rotate into more stable, quality…
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