Tech Earnings Are on Fire, Golub Says

Summary

Jonathan Golub, chief equity strategist at Seaport Research Partners, argues that corporate earnings are exceptionally strong, especially in semiconductors and technology, and that valuations have become cheaper despite price gains. He sees no fundamental reason to sell and encourages buying into weakness, highlighting Nvidia and Broadcom as attractively valued given their earnings growth trajectories. He also downplays recession fears and views the recent selloff as overdone.

• Golub says earnings are 'on fire' and continue to be revised higher.
• Semiconductor earnings have surged more than 50% since January.
• Valuations are lower almost everywhere, making stocks cheaper.
• Nvidia and Broadcom trade at multiples in the bottom half of tech despite strong growth.
• Recession probability has fallen from 30% to 25% and is likely overstated.
• Friday's selloff was out of sync with strong fundamental and economic data.