The Semiconductor Boom Keeps Finding New Gear

The semiconductor sector continues a historic run with the SOX index up 4.7% this week, tracking a melt-up pattern similar to the dot-com era. However, analysts see 0% upside to current price targets as the market questions the sustainability of forward earnings.

Key Takeaways

• 1.The Philadelphia Semiconductor Index (SOX) is in a historic 9-week run, despite a relatively 'low' 4.7% gain this week.
• 2.The sector is tracking a dot-com style 'melt-up' phase, suggesting further gains might lie ahead.
• 3.A structural shift in semiconductor PPI has occurred, moving from decades of deflation to inflation in the last year.

Table of Contents

• Only 4.7%
• More melt-up ahead?
• Semi sales
• Semi earnings
• Never again semis deflation?
• The analysts says enough
• Taiwan
• South Korea

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