The semiconductor sector is bracing for a game of musical chairs, and the best seat might be the most obvious, says Bank of America's Vivek Arya. "Our preferred compute names NVDA, AVGO, AMD and CRDO are projected to grow sales on average at a 42%," Arya wrote in a recent note to clients. Despite their massive reach, Arya argues that these cloud chip giants are trading at a "notably compelling valuation backdrop" of just 0.5x their price-to-earnings growth (PEG) ratio. For an industry often accused of ...

Market Overview - U.S. stock futures declined on Thursday following a positive close on Wednesday, with major benchmark indices showing lower futures [1] - The 10-year Treasury bond yielded 4.14%, while the two-year bond was at 3.61%, with a 67.3% likelihood of the Federal Reserve cutting interest rates in December [2] - Major indices' futures changes included Dow Jones -0.06%, S&P 500 -0.02%, Nasdaq 100 -0.06%, and Russell 2000 -0.19% [2] Company Performance - Coherent Corp. (NYSE:COHR) saw a significant increase of 14.31% after reporting revenue of $1.58 billion, a 17% year-over-year increase, and earnings of $1.16 per share compared to $0.67 from the same quarter last year [5] - Airbnb Inc. (NASDAQ:ABNB) rose 0.041% in premarket trading ahead of its earnings report, with expectations of $2.34 earnings per share on revenue of $4.08 billion [6] - Apple Inc. (NASDAQ:AAPL) fell 0.27% after news of a deal to pay Alphabet Inc. approximately $1 billion yearly for AI technology to improve Siri [6] - Marvell Technology Inc. (NASDAQ:MRVL) surged 8.55% amid reports of SoftBank Group exploring a potential takeover of the company [6] Sector Performance - Sectors with the biggest gains included communication services, consumer discretionary, and materials, while consumer staples and information technology closed lower [8] Analyst Insights - Sean Peche, founder of Ranmore Fund Management, expressed concerns about the stock market being overvalued, drawing parallels to Japan's late-1980s bubble, citing high valuations and euphoria driven by U.S. tech dominance [10][11] - Peche highlighted that the Magnificent 7 trades at 58x free cash flow, which worsens to 77x when adjusting for stock-based compensation, suggesting a reconsideration of reliance on the U.S. market [11][12] Upcoming Economic Data - Initial jobless claims data and third-quarter U.S. productivity data will be delayed, with several Federal Reserve officials scheduled to speak throughout the day [14][15] Commodities and Global Markets - Crude oil futures increased by 1.06% to around $60.23 per barrel, while Gold Spot rose 0.83% to approximately $4,012.21 per ounce [16] - Bitcoin traded 1.01% higher at $102,968.08 per coin [16] Global Market Performance - Asian markets closed higher, except for India's NIFTY 50 index, with notable gains in South Korea, Japan, Australia, Hong Kong, and China [17]