BTIG’s Krinsky says chip stocks are ’likely’ to fall 15%-20%

Chip and memory stocks are experiencing a decline following calls for a slowdown in AI development. According to Krinsky from BTIG, there is a likelihood that chip stocks will fall by 15% to 20%. This downward trend reflects broader market concerns regarding the pace of artificial intelligence growth and its immediate impact on semiconductor valuations. Investors are reacting to these warnings as the sector faces potential volatility and significant price corrections in the near term.