“This downcycle isn’t merely pushed by typical provide and demand dynamics, it’s totally different from the previous cycles as a consequence of geopolitical dangers,” mentioned Heo Pil-Seok, chief govt officer at Midas Worldwide Asset Administration in Seoul. “The US authorities’s exports controls would additional restrict IT firms’ gross sales in China and a big chunk of demand for chips will probably be weakened. If AMD, Nvidia can’t promote their chips in China, reminiscence makers’ earnings will deteriorate additional.”
