Modern property could face a 75% decline from its peak, according to a new warning from veteran market analyst Gareth Soloway.
According to Soloway, persistent weakness in semiconductor and memory loss may be the first sign of a major improvement in the sector as a whole, he said in interview by David Lin published on July 17.
The strategist said the markets are starting to look beyond the bullish trend artificial intelligence infrastructure spending and is focusing on future growth and declining demand for goods.
The warning comes as several high-flying chipmakers and memory stocks have fallen sharply after posting gains at an AI-driven event.
Soloway pointed to recent weakness in memory and semiconductor stocks as evidence that the market is beginning to price in on changing industry priorities.
According to his analysis, investors are looking at about 12 months into the future and are hoping for an increase in memory that will allow new products to come online.
“The first thing we need to understand is that markets are always looking 12 months ahead. <…> The semiconductors will finally see down to 75%. This is what history has told us. This time is no different. It’s no different than the AI revolution or again the Internet revolution. They are the same about the change of the world and the change of the game, “The change of the game, “The change of the game at the same time, “The change of technology, “The same change. he said.
At the same time, technology companies are looking for ways to reduce costs and increase the existing records after the price period.
Cracks are already showing in the stocks
The change in sentiment is already evident in the stock’s performance. Memory-chip giant Micron Technology (NASDAQ: MU ) is down about 36% from its all-time high to its latest low, despite reporting strong results this time around.
The decline has fueled concerns that semiconductor sales could grow if expectations about AI start to wane.
Although Soloway remains bullish on the sector in the short-term and expects a potential rebound after the recent pullback, he noted that history shows that major tech stocks are often followed by major corrections.
He compared the progress of AI investments to the evolution of older technologies, including the Internet era, noting that advanced technologies may still have valuable renewals after a period of greater optimism.
The analyst believes that semiconductor stocks may have a temporary rally after a recent correction but confirms that the long-term risk remains stable.
The warning comes as investors debate whether the recent weakness in the memory sector represents a healthy consolidation or the start of a major tech market correction.
AI trading has been one of the strongest topics on Wall Street in the past few years, generating huge profits for semiconductor manufacturers, data vendors, and hardware companies.
However, rising expectations, heightened competition, and questions about long-term sustainability are beginning to put pressure on some of the sector’s top performers.
