It’s shaping up to be another blockbuster year for semiconductor stocks, thanks to the spending boom on artificial intelligence technologies.
But are investors getting out over their skis in a volatile industry that could be vulnerable to a pullback? Lurking under the surface of the big bull market in semi stocks are worries about whether growth projections for AI demand are overly optimistic and inflating valuations.
While there is little fear that the money pouring into AI will dry up, there’s another risk for investors to consider.
This post originally appeared at Morningstar.