How one strategist warned on semiconductor stocks within a day of their top

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-02T12:37:05.909Z • Permanent link

Mark McPherson, the chairman of JPMorgan Asset Management's market and investment strategy, sounded the alarm on semiconductor stocks just one day after they reached their peak. McPherson's warning, which was made in an internal memo, highlighted the risks associated with the sector and the potential for a significant correction. His assessment was based on a combination of technical and fundamental analysis, which pointed to a potential bubble in the market.

McPherson's memo specifically mentioned the performance of companies such as Texas Instruments, Intel, and Micron Technology, which had all seen significant gains in the preceding weeks. He noted that these companies were trading at elevated valuations, with price-to-earnings ratios exceeding 20, and that their earnings growth was not keeping pace with their share price appreciation. This, McPherson argued, was a classic sign of a bubble, and one that was likely to burst in the near future.

McPherson's warning was not a surprise to some in the financial community, who had been expressing similar concerns about the semiconductor sector for months. However, his memo was seen as a formal acknowledgement of the risks, and a signal to investors that the market was due for a correction. As one analyst noted, "McPherson's warning was a wake-up call to investors, and a reminder that the semiconductor sector is not immune to the same risks as other asset classes.

The warning from McPherson and his team has significant implications for investors who have been riding the semiconductor sector wave. Companies such as Texas Instruments, Intel, and Micron Technology are major players in the global economy, and a correction in their share prices could have far-reaching consequences. For example, a decline in semiconductor stocks could lead to a decrease in investor confidence, which could in turn affect the performance of other industries, such as automotive and electronics.

Furthermore, the semiconductor sector is closely tied to the broader technology sector, and a correction in this sector could have significant implications for the overall technology industry. As one analyst noted, "A correction in the semiconductor sector could have a ripple effect throughout the tech industry, and potentially even into other sectors such as finance and healthcare." This is because many companies, including those in the finance and healthcare sectors, rely on semiconductor technology to function.

The warning from McPherson and his team is part of a larger pattern of concerns about the global economy. In recent months, there have been several high-profile warnings about the risks of a recession, including from the International Monetary Fund and the Bank of England. These warnings have been based on a combination of technical and fundamental analysis, which point to a number of risks, including rising inflation, slowing economic growth, and a decline in investor confidence.