SMH•Nordea sees an overreaction in semiconductor stocks to concerns about slower AI infrastructure expansion. The bank says near-term investments are largely committed and technology companies continue to signal substantial spending.
Nordea says semiconductor stock valuations have fallen despite strong earnings growth, as concerns about slower data center expansion from 2028 have grown following Democratic gains in U.S. midterm elections. Texas accounts for roughly 25% of planned data center capacity. The bank says a slower expansion could extend the investment cycle, while more attractive valuations, stalled interest-rate increases and extremely negative sentiment support cautious optimism; it expects markets to remain volatile.
