Quilter warns capex cuts could deepen semiconductor stock downturn
SMH•Quilter Cheviot’s Ben Barringer warned that potential capital expenditure cuts could deepen semiconductor stock losses, despite strong demand. He said uncertainty and downward revisions are emerging for 2029 onward, and sees no buying opportunity yet.
1. Capex outlook
Ben Barringer of Quilter Cheviot warned on November 6 that potential capital expenditure cuts could deepen semiconductor stock losses. He said semiconductor demand remains strong, but uncertainty and downward revisions are emerging for 2029 onward; lower spending could weigh on semiconductor earnings while supporting hyperscalers’ free cash flow. Barringer sees no buying opportunity yet, citing tighter AI financing. Nvidia’s earnings update in a week and a half is the next catalyst, with hyperscaler spending to face scrutiny in January.
