Is the semiconductors trade getting overcrowded?
VanEck Semiconductor ETF $SMH had the largest inflows in the history of the ETF yesterday, according to Goldman. Source: Markets & Mayhem
Apollo just doubled down on their view that we are in a bigger bubble than the 2000 Dot-com bubble.
3 weeks ago, they said the current bubble is "bigger than the 1990s tech bubble." They note that the Forward P/E ratio for the top 10 tech stocks right now is ~40x. Compared to 2000, at the peak of the Dot-com bubble, the Forward P/E on the top 10 tech stocks was ~26x. Now, Apollo says that ~30% of stocks have a P/E ratio of 30x or more. Overall, Apollo says that P/E ratios now are much higher than they were in 2000. What's next for AI hype? Source: The Kobeissi Letter
Sector weightings are a big reason why international markets have underperformed the US over the last 10-15 years.
US=Tech=Outperformance Source : bespoke
Semiconductor stocks have reached their highest valuation compared to the S&P 500, exceeding the levels seen during the dot-com bubble peak.
source : bloomberg
Panic buying? Tech funds are on track for record $99bn inflow in 2024
Source: TME, BofA
6 out of the top 20 stocks in the SP500 this year are in the Semiconductor space
Nvidia once again leading everything w/ a gain of +66%. $NVDA . Source: Charlie Bilello
Thanks God for tech! Big tech is the only space seeing upward revisions
Source: TME, Barclays
BREAKING >>> THE NANCY PELOSI EFFECT ! Palo Alto Networks stock, $PANW, is now up 10% today after Nancy Pelosi bought call options on the stock.
The call options are reportedly worth up to $1.25 million. This comes just days after $PANW fell over 30% following their earnings results. Markets are effectively treating Pelosi's trades like an activist hedge fund took a stake in the company. Her track record on buying many large cap tech stocks at their lows, including $NVDA, is largely why... Is Nancy ‘Gordon Gecko’ Pelosi the new Cathie Wood ??? Source: The Kobeissi Letter
