Bloomberg Surveillance · Tuesday, September 1, 2026
David Katz explains that while semiconductors had a strong second quarter, recent earnings beats are being met with sell-offs due to concerns about future growth. He notes that stocks trading at very high multiples, even after a pullback, can still be expensive.
“So semiconductors had their best second quarter ever because the business was good, but the stocks went up 100% to 200%.”
“Right now, they're reporting really good earnings, but people are worried about two years out, three years out.”
“So when you get to 50 to 100 times earnings, you've got too much positives built in, and you can have some sort of a pullback, even if the news is very good.”