Prof G Markets · Wednesday, July 1, 2026
Stacy Rasgon notes that approximately 70% of the semiconductor sector's performance year to date has been driven by earnings growth, with valuation increases being less significant. This suggests that the sector's rally is supported by fundamental business improvements rather than just speculative trading.
“And and frankly, even with the space up 100% year to date, you know, you'll break down into the drivers, you'll probably 70% plus of that performance has actually been earnings growth.”
“So, like, multiples in the space are up, and I won't say that like the space overall is expensive, but it's not egregious.”
“And by far and away, the earnings so far year to date have grown much more than the valuations have.”