This Chip CEO Just Warned the Data Center Market Is in a 'Bubble.' Which Stocks Are Most Exposed?

The Motley Fool · Jonathan Ponciano · 2026-11-06 14:20 UTC

On one of the worst days for AI stocks in years, a veteran chip executive said out loud what many investors fear. Here's who has the most to lose if he's right.

Plenty of investors have wondered whether the artificial intelligence boom has gone too far. On Thursday, the head of a $35 billion chipmaker effectively said so directly.

"I have been saying it, that data center is in the bubble," Steve Sanghi, president and CEO of Microchip Technology (MCHP -5.32%), said on the company's earnings call Thursday evening, according to a recording of the call.

The timing was hard to miss. Earlier that day, the Invesco QQQ Trust (QQQ +1.79%), which tracks the Nasdaq 100, fell 6.5%, and the VanEck Semiconductor ETF (SMH +5.43%) dropped 11.2%. Microchip itself tumbled 13.9% during the session, before it reported results after the closing bell. (Shares are up less than 1% in pre-market trading on Friday.)

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