Investors dumping chip stocks hand over fist this summer may be forgetting something important: the strong fundamentals of the underlying companies.
Quick insight: JPMorgan is one of the first sell-side firms to come out bullish in the wake of the chip stock rout.
Others could soon follow, given the depth of the sell-off.
"We think that semis will find a floor soon on continued strong earnings delivery," JPMorgan strategist Mislav Matejka said in a note on Monday.
"Our view is that fundamentals will likely remain constructive, as meaningful supply additions are not due before 2028, so it would be too early at present to price in an inflection … if hyperscalers capex guidance remains strong, then we think that investors should step back into the ****** e over summer," Matejka said.
#investors #chip #fundamentals #think
Quick insight: JPMorgan is one of the first sell-side firms to come out bullish in the wake of the chip stock rout.
Others could soon follow, given the depth of the sell-off.
"We think that semis will find a floor soon on continued strong earnings delivery," JPMorgan strategist Mislav Matejka said in a note on Monday.
"Our view is that fundamentals will likely remain constructive, as meaningful supply additions are not due before 2028, so it would be too early at present to price in an inflection … if hyperscalers capex guidance remains strong, then we think that investors should step back into the ****** e over summer," Matejka said.
#investors #chip #fundamentals #think
3 months ago
