Bloomberg Surveillance · Wednesday, August 5, 2026
Following a market 'clearing event' that reset charts, leadership is expected to shift from chip stocks to hyper-scalers. While chip companies have benefited from the capex cycle, their rapid growth rates may slow, leading to increased scrutiny. The market anticipates a rotation into previously underperforming large-cap tech stocks.
“I think for the most part it's likely to be from the hyperscalers and less on the chips, in part because the chips have come so far, and there is that lingering question.”
“At some point there's going to be a question, Can you grow earnings one thousand percent? Are you growing earnings twenty percent instead, which is still excellent, but it's not growing one thousand percent.”
“So I think you're probably getting it to the unloved companies. Since November one of last year, that whole panoply of large cab tech has been terrible underperformed the S and P. It's underperformed the rustle, it's underperformed international, it's underperformed emerging markets, and I think that gets a little that gets reverted to here.”