Buzzberg Cup Live

Chip Stocks Rally in AI Trade Revival After Plunge

Watch on YouTube ↗  |  July 06, 2026 at 16:55  |  6:54  |  Bloomberg Markets
Speakers
Lori Calvasina — Head of U.S. Equity Strategy, RBC Capital Markets

Summary

Lori Calvasina of RBC Capital Markets discusses the equity outlook following a chip-stock rebound. She reiterates a 12-month S&P 500 target of 8150, driven by earnings strength offsetting valuation pressure. The AI trade is broadening, but she expects AI-centric names to lead again after a correction. The financial sector screens as attractively valued and likely to benefit from stabilising consumer sentiment.

  • S&P 500 12-month target raised to 8150 on earnings resilience
  • Earnings tailwind seen offsetting PE compression from rates and inflation
  • AI trade broadening from Mag 7 to semis, now looking for end-user applications
  • AI-centric names expected to regain leadership after valuation correction
  • Financials flagged as cheap with positive revisions and sentiment-recovery catalyst
  • Risks include midterm elections, 2027 earnings estimates, and rate volatility
Ideas
Lori Calvasina Head of U.S. Equity Strategy, RBC Capital Markets 0:59
Earnings tailwind offsets PE headwinds.
Earnings strength continues to provide a tailwind that offsets PE compression from tricky rates and inflation, supporting a 12-month S&P 500 target of 8150. The call is backed by five models, and the consumer-stabilisation thesis reinforces a modest but positive equity outlook.
SPY HIGH
Lori Calvasina Head of U.S. Equity Strategy, RBC Capital Markets 1:56
AI-centric names to regain favor post-correction.
The AI trade experienced a broadening beyond megacap tech and semis, but semis are at peak revisions and expensive. After the valuation correction resolves, the earnings story will once again favor AI-centric names.
AI-centric stocks MED
Lori Calvasina Head of U.S. Equity Strategy, RBC Capital Markets 6:07
Financials look attractive on value and sentiment recovery.
The financial sector has reasonable valuations, good earnings revisions, and historically performs well when consumer sentiment rebounds. Recent consumer survey stabilisation suggests a turnaround that would benefit the sector.
XLF HIGH
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This Bloomberg Markets video, published July 06, 2026, features Lori Calvasina discussing SPY, AI-centric stocks, XLF. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Lori Calvasina  · Tickers: SPY, AI-centric stocks, XLF