Thoughtful Money with Adam Taggart · Saturday, June 27, 2026
Lance Roberts expressed concern that the strong momentum in the semiconductor market is driven by its cyclical nature and the expectation of infinite earnings growth, which he believes is unsustainable. He warned that increased supply and competition could lead to a significant price reversion, potentially causing money to rotate back into more stable growth stocks like those in the 'Mag 7'.
“And what happens is now you've got everybody buying into, into one of the most cyclical markets, semiconductors are very cyclical. That's why I'm concerned.”
“No, no, everybody's piling into a commodity trade that's historically very volatile on the expectation that this earnings growth is now infinite and it's not.”
“So, at some point, that supply catches up with the demand and balance then you get the big reversion in price. And that's eventually going to happen, not this year, not, you know, not the next month, there's six months, but at some point, that reversion in that trade is going to be rather significant.”