Chip Stocks Down on Momentum and Not CPI, Bokeh's Forrest Says

• Semiconductor stock slide is primarily due to a natural pause in momentum and exhausted buyers, not the CPI print.
• AI development is still in its very early stages, with significant long-term growth potential ahead.
• US-China relations are walking a 'narrow line' regarding AI and chip technology, especially concerning military applications.
• More discernment is expected in AI investments, moving beyond initial 'winners' like Nvidia and OpenAI.

Kim Forrest of Bokeh Capital Partners attributes the recent slide in semiconductor stocks to a natural pause after significant gains, rather than the latest CPI report. She maintains a bullish long-term outlook for AI development, comparing it to the 'bottom of the second inning,' and anticipates more market discernment. Forrest also highlights the ongoing US-China tensions over critical tech, particularly concerning AI and chip technology for military applications.