The UBS Group's trading desk sent a warning to clients late Wednesday, urging investors to “reduce risk meaningfully” in tech stocks as the AI trade grows increasingly crowded.

The bank’s traders flagged a troubling shift in how markets are pricing AI-related names, particularly in semiconductors. 

MU stock is moving. See the chart and price action here.

“The market backdrop, and the narratives around the AI trade in semis, have now created an extreme and increasingly binary framework of ‘winners’ versus ‘losers.’ There is very little room for debate around the merits of anything in between,” the desk wrote, per CNBC. 

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The stakes are high for names that have landed on the winners’ side. 

SanDisk Corp. (NASDAQ:SNDK) has surged 4,219.3% over the past year. Micron Technology, Inc. (NASDAQ:MU) is up 746.4%. Even Advanced Micro Devices, Inc. (NASDAQ:AMD), the ...