Chip stocks are the cheapest they’ve been in nearly seven years. How low is too low? — SkimNews
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- Semiconductor stocks fell sharply on Nov. 5, and contrarian investors saw the decline as a potential buying opportunity.
- Semiconductor valuations fell to their lowest level since January 2019 as soaring earnings expectations drove the reset.
Why it matters: Semiconductor shareholders took the immediate loss from the Nov. 5 sell-off, while contrarian investors now face an entry point at January 2019 valuation levels with earnings expectations soaring. The combination marks a nearly seven-year pricing low, but it does not establish that prices have bottomed.
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