AI chip rally faces reality check, but bubble fears may be overdone: Adrian Mowat

Veteran strategist Adrian Mowat has said fears of an AI bubble bursting may be overdone, noting that recent corrections in memory chip names like Micron, Samsung and Hynix were driven by sharp positive earnings revisions amid tight semiconductor supply-demand dynamics. He cautioned that the next leg of the AI rally depends on companies translating AI investments into actual revenue and cost benefits, with high volatility likely to persist in memory stocks. On India, Mowat noted that the domestic tech sector has not been insulated, falling over 30 percent year-to-date on AI-related concerns, and said sentiment could improve if Indian IT firms demonstrate tangible AI-driven gains for clients.