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ICYMI - HSBC stays bullish on US stocks, calls chip selloff rotation not capitulation
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---HSBC note on Friday says the sharp pullback in chip stocks looks like rotation into software rather than a broader retreat from the AI trade.
The bank views the recent pullback in semiconductor and memory stocks as rotation rather than capitulation, driven by investors reassessing whether profit growth can meet elevated expectations.
Semiconductor names including Samsung, SK Hynix, Intel and Micron have each fallen by roughly a third over the past month.
At the same time, software stocks, an area HSBC describes as sometimes unloved, have come back into favour.
The bank also pointed to Asia's growing role in the global data centre build-out, forecasting that the region's data centre capacity will more than double by 2030 to account for around 40% of global capacity.