Stacy Rasgon of Bernstein said surging AI demand is driving semiconductor stocks higher, but highlights growing imbalances across the sector.

AI Demand Outpaces Supply

Rasgon told CNBC on Friday that the industry faces a clear shortage of computing power, with demand showing no signs of slowing. He pointed to rising memory prices and tight supply across the AI ecosystem, including chips, optics, and CPUs.

He added that companies and AI labs are reporting rapidly growing revenues, reinforcing that demand is real, even as questions remain about long-term returns on heavy AI investments.

Divergence Across Chip Stocks

Rasgon noted that semiconductor stocks have not moved in sync. While companies like Intel Corp. (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NASDAQ:AMD) have surged recently, others, such as NVIDIA Corp. (NASDAQ:NVDA) and Broadcom Inc. (NASDAQ:AVGO), have been relatively stagnant for a period.

He says investors have rotated into areas facing supply constraints, including memory and equipment, creating a split in sector performance.

Valuation Gap May Correct

Rasgon highlights a disconnect between high demand and stock valuations. He says companies like NVIDIA and Broadcom appear to trade at around 15 times earnings or less, even as suppliers' stocks surge.

He suggests this imbalance is unlikely to last, noting that the gap between different parts of the AI supply chain will eventually correct "one way or the other."

Price Action: Shares of Nvidia fell 1.24% to $199.18, Broadcom declined 1.40% to $400.86, Intel slipped 1.24% to $67.65, and Advanced Micro Devices dropped 1.09% to $275.35 in Monday's premarket session, according to Benzinga Pro data.

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