Bloomberg Surveillance · Friday, July 24, 2026
While there is significant AI spending, uncertainty remains about how it will translate into cash flow and when. The semiconductor sector, after an 80% surge, saw its rally cool off, indicating that this reset in tech and semiconductors may continue due to overheating. Speaker 4 notes that while the move in semiconductors has been strong, current valuations are lower than in the late nineties.
“Well, I mean, I think it. Is important, as you mentioned right now, there's so much uncertainty about how all the AI spending turns into a cash flow like and when.”
“But I also remindful it was like, you know, semiconductor just came off an eighty percent plush quarters, so in some ways I think that was anticipating these good numbers and you know it's priced in.”
“So it does tell you at this point that this kind of cooling or this reset in tech and semiconductors likely has a bit further to go because it was so overheat.”