CNBC Pro

One top tech investor is betting against chip stocks, bearish Netflix

VIDEO2:3902:39
Why this expert believes semiconductor companies will cut forecasts

Semiconductor stocks are going to fall as chipmakers start to cut their earnings forecasts for the second half of the year, AlphaOne Capital Partners' Dan Niles said on Thursday. 

Niles started shorting semiconductor stocks this week and sold out of all is long semiconductor positions, in which he previously owned Qualcomm and Lumentum Holdings, he told CNBC's Squawk Alley. Niles expects most semi companies will cut their earnings forecasts "due to bad end-demand & elevated inventories," he said on Twitter on Tuesday. 

More In Pro News and Analysis

CNBC Pro‘Dividend aristocrats': Strategists name high-yielding stocks to ride out a bear market
CNBC ProRay Dalio is having a good year with Bridgewater's flagship fund gaining more than 30% so far
CNBC ProBuy these stocks to insulate your portfolio from the next big market risk, Morgan Stanley says