GAM's Paul Markham warns chip stock selloff isn't a buying opportunity yet

Paul Markham, the head of global equities at GAM Investments, has a simple message for anyone eyeing chip stocks right now: don’t.

Speaking on July 28, Markham argued that the recent global selloff in semiconductor shares hasn’t cleared enough froth to make them attractive again.

Too many passengers on the same side of the boat

Markham’s core thesis is about positioning, not fundamentals. Investor ownership in chip stocks remains excessively concentrated, which means the selloff could have further to run before it creates genuine value.

“There are so many people on the same side of the boat.”