Some of the shine is wearing off shares of Nvidia and other U.S. semiconductor companies after a stunning 2023 rally, as investors weigh steep valuations, rising Treasury yields and signs of industry unease.
But performance for the group has stalled. The SOX semiconductor index is off over 7% this month, versus a 2.3% drop for the broad S&P 500, while shares of Nvidia - a driver of the broader market’s rally this year - have declined more than 14% in September. As the stocks rose this year, so did valuations. At the end of July, the 21-stock S&P 500 semiconductors and semiconductors equipment industry group was trading at 28.5 times forward 12-month earnings estimates, compared to its 10-year average P/E of 16.5 times, according to LSEG Datastream.
Valuations are coming under further pressure from the rise in Treasury yields. Higher yields on Treasuries - which are seen as virtually risk free - offer investment competition to equities, viewed as a riskier asset class.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nvidia, other US chip stocks stall over valuation, industry worriesSome of the shine is wearing off shares of Nvidia and other U.S. semiconductor companies after a stunning 2023 rally, as investors weigh steep valuations, rising Treasury yields and signs of industry unease. Chip stocks soared to start the year, with the Philadelphia SE Semiconductor index rising over 50% through July. No stock symbolized the chip industry's success more than Nvidia, whose shares tripled in 2023 as the company's market value topped $1 trillion, driven by excitement over the central role of the company's products in artificial intelligence applications.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Nvidia, other US chip stocks stall over valuation, industry worriesBy Lewis Krauskopf NEW YORK (Reuters) - Some of the shine is wearing off shares of Nvidia and other U.S. semiconductor companies after a stunning 2023 ...
Source: SaltWire Network - 🏆 45. / 63 Read more »
Nvidia CEO Touts India as Major AI Market in Bid to Hedge China RisksCEO Jensen Huang is betting on India’s potential to become ‘one of the largest AI markets in the world.’
Source: BNNBloomberg - 🏆 83. / 50 Read more »
BofA lifts S&P 500 2023-end target by 7%, led by 'old economy' stocksThe S&P 500 is up 15.7% so far this year, largely driven by a rally in a handful of mega-cap growth stocks such as Nvidia and Meta that have ridden the artificial intelligence (AI) boom. While the rally has been moderating, BofA remains in 'neutral' to 'positive' territory on U.S. stocks, with a bias towards equal-weighted stocks, strategists led by Savita Subramanian said. An equal-weight index assigns uniform weights to each constituent, unlike a market capitalization-based index, like the S&P 500, where bigger companies tend to have an outsized influence.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Stock futures step higher as markets wait for Fed: Stock market news todayWall Street stocks set up for a higher open as investors focus on what the Fed plans for the future.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »