According to Morgan Stanley’s Mike Wilson, AI stocks have become overcooked, and Nvidia and other semiconductor stocks will likely struggle in 2024. Wilson believes the AI hype has driven valuations to unsustainable levels, and a correction is imminent. He argues that while AI is a transformative technology, its impact on corporate earnings is still years away. Wilson recommends investors take profits in AI-related stocks and shift focus to more reasonably valued areas of the market. He also warns that semiconductor stocks, including Nvidia, may face headwinds as demand for data center chips cools off. Wilson advises investors to be selective and avoid chasing the AI frenzy at current valuations.