Semiconductor stocks could plunge even more from here if a recession hits the U.S. economy, KeyBanc Capital Markets projects. “Recent U.S.-instituted reciprocal tariffs have increased concerns of a potential recession,” analyst John Vinh wrote in a note dated Tuesday. “We believe looking at the average of the last four cycles of -47% peak-to-trough EPS represents a more realistic downside scenario, which would suggest 30-40% further downside risk to current valuations if we were to enter a recession.” The forecast comes as chip stocks are already under pressure following President Donald Trump’s sweeping “reciprocal” tariffs announcement earlier this month. The iShares Semiconductor ETF (SOXX) is down 7% since April 2. Vinh noted that…
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