Two famous analysts, two opposing forecasts: Are chip stocks headed for a comeback or a crash?

Two famous analysts, Dan Ives and Tom Lee, present opposing forecasts for the future of chip stocks: Ives predicts a further decline of 10%-12%, while Lee sees an overreaction and forecasts a rally of 20%. The Philadelphia Semiconductor Index fell 9% today, on track for its worst week since April 2025.

Two leading analysts, Dan Ives and Tom Lee, present opposing forecasts for the future of chip stocks, following a sharp decline that erased about $4 trillion from their value since October 6. The Philadelphia Semiconductor Index (SOX) fell 3% yesterday and 9% today, on track for its worst week since the tariff crash in April 2025. Ives predicts a further decline of 10%-12%, while Lee sees an overreaction and forecasts a rally of 20%. Political pressure is mounting: Senator Bernie Sanders and Congresswoman Alexandria Ocasio-Cortez have promoted a moratorium on building new AI data centers. However, analysts from UBS and Fundstrat note that demand for AI infrastructure still exceeds supply, and corporate earnings remain strong.