“What’s the takeaway? Besides the cool symmetry of the 18-year gap between clear new highs (not to mention this is the 9-year anniversary date of the current bull market low in many areas of the market — that is some voodoo!), it is a reminder of the virtues of relative strength,” reports ETF Daily News.
Investors could be paying up for future catalysts for semiconductor and broader technology names. If there is a silver lining for the rising valuations on chip stocks it is that some industry observers believe the group’s valuations should not be measured in the traditional sense because of the evolution of the semiconductor business.
SOXX has a price-to-earnings ratio of 28.28 and a price-to-book ratio of 5.15.
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