Morgan Stanley stated that against the backdrop of trade-related risks, overvaluation, and insufficient profit growth potential, investors should take profits in Asian Technology Stocks. The report notes that if tariffs on computer chips are raised and trade tensions escalate, the Sector will decline by approximately 20% in the short term. It is advisable to reduce overall exposure to Technology Stocks and hedge Industry risks in the short term. The adverse factors in the Sector have led to poor short-term risk-return profiles. The Global enthusiasm for AI has brought a Bullish sentiment to Asian Technology Stocks, with an Index tracking semiconductor stocks in the region rising over 65% since the end of 2022. USA President Trump indicated that he anticipates imposing more tariffs on foreign-produced computer chips and Semiconductors. Analysts pointed out that a round of geopolitical disputes in 2018 led to a decline in the industry's stock prices.