Ubs analyst warns data center bottlenecks could create semiconductor supply gaps

Nadia Lovell, who serves as head of global equity strategy at UBS Global Wealth Management, has cautioned that delays within data center construction pose a significant risk to the semiconductor supply chain. Lovell suggests these delays could result in an air gap for chips, which in turn could put pressure on inventory levels, pricing, and profit margins across the industry. Speaking during a Bloomberg Surveillance segment, Lovell indicated a strategic preference for compute-focused hardware over memory solutions. Furthermore, she noted a particular interest in hyperscalers that currently possess existing operational capacity.