BofA: Chip Stock Selloff May Bottom in Early 2027

BofA's call hinges on a historical lead-lag relationship rather than a visible catalyst, so the early-2027 timing is a projection about when indiscriminate selling exhausts itself, not evidence that it has. The read-through extends past chipmakers: the SOX now trades below the S&P 500's forward multiple, a valuation gap that reframes semis from momentum leaders to laggards and matters for anyone benchmarked to the index. Whether the six-to-nine-month lead holds this cycle, and whether the discount to the broad market persists, is the open question.