Max Wasserman, a senior portfolio manager at Miramar Capital, expressed concerns over the high multiples of large-cap chip stocks. He warned that their current expensive state could make the broader US stock market more vulnerable to a selloff.
Key takeaways:
- The artificial intelligence trend is causing the shares of chipmakers like Nvidia Corp. to soar.
- This rise in chipmaker stocks is becoming increasingly important to the broader S&P 500 Index rally.
- However, these stocks are no longer cheap, adding a new level of risk to further gains in the broad equities benchmark.
- Max Wasserman, senior portfolio manager at Miramar Capital, warns that the high multiples of large-cap chip stocks could make the broader US stock market more susceptible to a selloff.