“1. Chipmaker stocks collapse in ‘AI Winter’
According to Saxo Bank, the microchips powering the artificial intelligence revolution could start to yield diminishing returns in 2020.
“As reality sets in on the limitations of AI the SOX Index collapses 50% with deteriorating earnings growth as investments freeze in a new AI winter,” the firm wrote.
Chipmakers’ growth in recent years has come from investments in everything from AI to cryptocurrency. But those gains could sputter in 2020 as actual results fail to meet investor’s expectations, the bank added.”