The David Lin Report · Tuesday, July 14, 2026
Peter Boockvar suggests that the current downturn in tech stocks, particularly AI-focused ones, is not just a rotation during earnings season but a reflection of deteriorating free cash flow and significant spending. He notes that even semiconductor companies are experiencing a "vertigo" due to these pressures.
“But with the focus on AI, you have the spenders and you have the recipients of that spend and starting last year, uh, the spenders started to get rerated as people noticed the deteriorating free cash flow and the enormous amount of money that was being spent while the recipients of all that money, particularly semiconductors as we know of late, uh, were rewarded.”
“So I guess a little bit of uh vertigo, I guess you can say with the semiconductor trade.”
“But when you are 18 to 19% of the S&P 500, you really do matter.”