Semiconductor Rally Looks Unlike Dot-Com Bubble, but WSJ Warns of Heat

The Wall Street Journal recently assessed the semiconductor rally spreading across global stock markets. According to the WSJ, the current surge appears different from the dot-com bubble around 2000 because it is based on corporate earnings performance. In that earlier period, market momentum was driven more by expectations and speculation, while today’s semiconductor shares have an earnings foundation. Still, the newspaper noted that concerns about overheating are rising as the rally expands quickly. Since semiconductor stocks have become a key force behind global equity gains, investors need to weigh the earnings-based difference against the risk of excessive optimism. Source: mk.co.kr