Chip Shortages and Rate Hikes Throw Sand in High-Tech's Gears
• AI competition growing - Nvidia facing new AI chips from AMD and Intel while Taiwan Semiconductor manufacturing capacity limited
• Electric vehicles losing momentum - High prices, lower demand, and profit margin pressure on manufacturers like Tesla and Lucid
• Cybersecurity steadfast growth - CrowdStrike and others seeing strong recurring revenue growth as cybercrime rises steadily
• Chip shortages potential headwind - Constrained manufacturing capacity even as demand rises across sectors
• Fed rate hikes raised EV financing costs - Higher interest rates made electric vehicles even less affordable