Rebound in Chipmakers Gathers Pace | The Close 7/21/2026

Watch on YouTube ↗  |  July 21, 2026 at 22:10  |  1:29:39  |  Bloomberg Markets
Speakers
Julie Biel — Portfolio Manager, Kayne Anderson Rudnick
Rachel Aguirre — Head of Product & Portfolio Strategy, Vanguard
Matt Orton — Chief Market Strategist, Raymond James
Vas Narasimhan — CEO, Novartis
David Welch — Detroit Bureau Chief, Bloomberg
Daniel Silverfield — Director & Head of Value & Selection, Amazon Business
Aaron Mulvihill — Head of Content, Blockworks
Stephanie Valdez Streaty — Director of Industry Insights, Cox Automotive

Summary

Bloomberg 'The Close' covers a semiconductor rebound driven by TSMC pricing news, a shift in AI investment from builders to value stocks, and bullish calls on financials and biotech. Guests discuss Novartis's pipeline resilience, Amazon's B2B growth, GM's raised outlook, and emerging trends in luxury real estate and retail options. Markets face tension between rising oil and bond yields versus equity gains.

  • Semiconductor stocks rally 5%, best in a month, after TSMC reportedly seeks 10% price increases.
  • Vanguard strategist argues AI's long-term value will flow to users (value stocks), not chipmakers.
  • Kayne Anderson Rudnick sees low-bar opportunities in software and small-cap resilience on strong economy.
  • Raymond James strategist bullish on AI chip capex sustainabilty, financials, and biotech M&A.
  • Novartis CEO expresses confidence in pipeline to deliver 5-6% growth despite patent expirations.
  • Amazon Business hits $60B annualized sales, driven by simplicity and AI tools.
  • Luxury real estate trend 'landmaxxing' emerges among affluent buyers seeking privacy and views.
  • Oil above $91/bbl and 10-year yield at 4.60% create macro headwinds, but equities disconnect.
Ideas
Julie Biel Portfolio Manager, Kayne Anderson Rudnick 4:23
Chip stocks have room for further gains.
Chip stocks have pulled back, creating opportunities for further gains driven by AI themes that continue to play out. The recent sharp drawdown reflects investor anxiety rather than conviction, leaving room for upside as earnings deliver.
SOX MED
Julie Biel Portfolio Manager, Kayne Anderson Rudnick 5:33
Software companies can surprise to upside.
Software and services companies face a low bar for earnings expectations relative to semiconductors, and if they can show AI integration and solid forward guidance, they could positively surprise and outperform.
IGV MED
Julie Biel Portfolio Manager, Kayne Anderson Rudnick 7:24
Strong economy offsets rate headwinds for small caps.
Small-cap stocks benefit from a stronger U.S. economy, which can offset headwinds from elevated or flat interest rates. Quality small caps with low debt are especially well-positioned because underlying fundamentals drive earnings more than one-time rate changes.
IWM MED
Rachel Aguirre Head of Product & Portfolio Strategy, Vanguard 10:37
Value stocks will benefit most from AI.
AI will transform the U.S. economy, but the greatest long-term value will accrue to value stocks—the users of AI benefiting from productivity gains, new services, and innovation—not the builders. Value is where the AI boom ultimately pays off and also provides short-term insurance during a bumpy ride.
VTV HIGH
Vas Narasimhan CEO, Novartis 15:44
Novartis pipeline supports long-term growth.
Novartis is confident in navigating its patent cliff through strong growth from existing medicines, a robust cancer portfolio, new launches, and a pipeline of late-stage assets. The company expects 5-6% annual growth through the end of the decade, with potential to upgrade mid-term guidance as Phase 3 readouts hit.
NVS HIGH
Matt Orton Chief Market Strategist, Raymond James 40:23
Financials have more room to run.
Financials are experiencing positive earnings momentum that is finally being rewarded in share prices, and there is more room for upside as the sector continues to deliver growth.
XLF MED
Matt Orton Chief Market Strategist, Raymond James 41:34
Biotech has sustainability and upside opportunity.
Biotech has been an underrepresented story with sustainable tailwinds: large pharma companies facing patent cliffs will acquire smaller biotech firms, and pullbacks provide opportunistic entry points, especially if rates stabilize or decline.
IBB MED
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This Bloomberg Markets video, published July 21, 2026, features Julie Biel, Rachel Aguirre, Vas Narasimhan, Matt Orton discussing SOX, IGV, IWM, VTV, NVS, XLF, IBB. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Julie Biel, Rachel Aguirre, Vas Narasimhan, Matt Orton  · Tickers: SOX, IGV, IWM, VTV, NVS, XLF, IBB