Wells Fargo upgrades US AI infrastructure view after chip selloff

Wells Fargo upgraded its view ​on US AI infrastructure companies to "neutral" ​from "negative", saying a sharp ‌selloff in ​semiconductor stocks has improved the sector's risk-reward profile even as concerns persist about a slowdown in ‌AI spending. The brokerage said semiconductor shares have fallen about 38% from their June highs, while valuation multiples have compressed significantly, leaving much of the expected ‌moderation in AI-related earnings growth already reflected in stock prices.