STOCKS | Nomura Says It Is Too Early to Call a Peak in Chip Stocks

Nomura’s securities team said it is too early to conclude that chip stocks have peaked and expects the sector’s upward momentum to continue. According to Odaily, the team cited two reasons: hyperscale data center operators that face a “go big or get out” dynamic are expected to keep investing through 2027, partly because memory chip costs are rising, and data center construction plans are accelerating. The team described the recent pullback in chip prices as “healthy,” but warned that the market has not yet priced in some potential future risks and shortages.