Wells Fargo upgrades US AI infrastructure view after chip selloff

reuters

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Wells Fargo upgraded its view on US AI infrastructure companies to "neutral" from "negative", saying a sharp selloff ​in semiconductor stocks has improved the sector's risk-reward ‌profile even as concerns persist about a slowdown in AI spending. The brokerage said semiconductor shares have fallen about 38% ​from their June highs, while valuation multiples have ​compressed significantly, leaving much of the expected moderation ⁠in AI-related earnings growth already reflected in stock ​prices.